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A three hour Executive Briefing that outlines the most important aspects of what I advocate with regard to Integrated Business Information Systems, including ERP See also http://www.James-A-Robertson-and-Associates.com
Citation preview
Dr James Robertson PrEng
Copyright 1990 through 2014JamesJamesARobertsoncom
James A Robertson and AssociatesEffective Strategic Business Solutions
IBIS ndash the Strategic view of Business Information
2
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
3
AgendaIBIS ndash the Strategic view of Business Information
1 Context
4
A word of caution
This is a radically different way of looking at Business Information Systems and ERP
Please be open to different ways of thinking
5
Who is James Robertson
1 Civil Engineer
2 Grounding in economics
3 Military strategic training
4 Strategic implementation of business computer systems for over thirty years ndash create sustainable competitive advantage
5 Consulting and facilitating with regard to strategy and strategic solutions for over twenty years
6 Engineering approach to strategic analysis and planning
7 Pioneered methods that work in practice
6
This is NOT in a Text Book
bull Engineeringbull Zoologybull Document cataloguingbull Military combat planningbull Methods of structured software designbull Strategic planning techniquesbull etcbull Dozens of pulse measurements ndash what does NOT work and what doesbull Cataloguing and analysing findingsbull Trial and errorbull Never did process BUT produced excellent resultsbull Then a client told me I was incompetent because I did not do process
bull Proven conclusively process close to irrelevant for ERP
implementation
Process is at BEST an output
7
Pulse measurement
bull A concise diagnostic investigation into why an ERP or other IT investment is NOT delivering what was promised
bull Prescription of what is required to solve the problems
bull Been doing them since 1990 ndash dozens and dozens
Process obsession is increasingly manifesting as a MAJOR cause of failures and sub-optimal
outcomes
In fact business process is close to irrelevant when it comes to designing HIGH VALUE ERP
solutions
Motivating quotes
bull ldquoJames you produce exceptional high value outcomes in ridiculously short time frames at ridiculously low costrdquo ndash Paul Leigh IT Director of the HSRC
bull ldquoJames you transformed what would have been a pedestrian poorly thought out system into an ERP that is already functional and will ultimately transform our analytics and IT offensive capabilities -- Robert Priebatsch Robert Priebatsch Chief Executive African Sales Company
bull ldquoJames you have provided some key pieces of my jigsaw puzzle now I understand why Business Systems Implementations are failingrdquo
bull ldquoJames we will have to find a consultant who understands ERPrdquo
bull All sorts of opposition
8
In fact hellip
Some very contradictory feedback
Engineers do NOT design bridges to stand up
2
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
3
AgendaIBIS ndash the Strategic view of Business Information
1 Context
4
A word of caution
This is a radically different way of looking at Business Information Systems and ERP
Please be open to different ways of thinking
5
Who is James Robertson
1 Civil Engineer
2 Grounding in economics
3 Military strategic training
4 Strategic implementation of business computer systems for over thirty years ndash create sustainable competitive advantage
5 Consulting and facilitating with regard to strategy and strategic solutions for over twenty years
6 Engineering approach to strategic analysis and planning
7 Pioneered methods that work in practice
6
This is NOT in a Text Book
bull Engineeringbull Zoologybull Document cataloguingbull Military combat planningbull Methods of structured software designbull Strategic planning techniquesbull etcbull Dozens of pulse measurements ndash what does NOT work and what doesbull Cataloguing and analysing findingsbull Trial and errorbull Never did process BUT produced excellent resultsbull Then a client told me I was incompetent because I did not do process
bull Proven conclusively process close to irrelevant for ERP
implementation
Process is at BEST an output
7
Pulse measurement
bull A concise diagnostic investigation into why an ERP or other IT investment is NOT delivering what was promised
bull Prescription of what is required to solve the problems
bull Been doing them since 1990 ndash dozens and dozens
Process obsession is increasingly manifesting as a MAJOR cause of failures and sub-optimal
outcomes
In fact business process is close to irrelevant when it comes to designing HIGH VALUE ERP
solutions
Motivating quotes
bull ldquoJames you produce exceptional high value outcomes in ridiculously short time frames at ridiculously low costrdquo ndash Paul Leigh IT Director of the HSRC
bull ldquoJames you transformed what would have been a pedestrian poorly thought out system into an ERP that is already functional and will ultimately transform our analytics and IT offensive capabilities -- Robert Priebatsch Robert Priebatsch Chief Executive African Sales Company
bull ldquoJames you have provided some key pieces of my jigsaw puzzle now I understand why Business Systems Implementations are failingrdquo
bull ldquoJames we will have to find a consultant who understands ERPrdquo
bull All sorts of opposition
8
In fact hellip
Some very contradictory feedback
Engineers do NOT design bridges to stand up
3
AgendaIBIS ndash the Strategic view of Business Information
1 Context
4
A word of caution
This is a radically different way of looking at Business Information Systems and ERP
Please be open to different ways of thinking
5
Who is James Robertson
1 Civil Engineer
2 Grounding in economics
3 Military strategic training
4 Strategic implementation of business computer systems for over thirty years ndash create sustainable competitive advantage
5 Consulting and facilitating with regard to strategy and strategic solutions for over twenty years
6 Engineering approach to strategic analysis and planning
7 Pioneered methods that work in practice
6
This is NOT in a Text Book
bull Engineeringbull Zoologybull Document cataloguingbull Military combat planningbull Methods of structured software designbull Strategic planning techniquesbull etcbull Dozens of pulse measurements ndash what does NOT work and what doesbull Cataloguing and analysing findingsbull Trial and errorbull Never did process BUT produced excellent resultsbull Then a client told me I was incompetent because I did not do process
bull Proven conclusively process close to irrelevant for ERP
implementation
Process is at BEST an output
7
Pulse measurement
bull A concise diagnostic investigation into why an ERP or other IT investment is NOT delivering what was promised
bull Prescription of what is required to solve the problems
bull Been doing them since 1990 ndash dozens and dozens
Process obsession is increasingly manifesting as a MAJOR cause of failures and sub-optimal
outcomes
In fact business process is close to irrelevant when it comes to designing HIGH VALUE ERP
solutions
Motivating quotes
bull ldquoJames you produce exceptional high value outcomes in ridiculously short time frames at ridiculously low costrdquo ndash Paul Leigh IT Director of the HSRC
bull ldquoJames you transformed what would have been a pedestrian poorly thought out system into an ERP that is already functional and will ultimately transform our analytics and IT offensive capabilities -- Robert Priebatsch Robert Priebatsch Chief Executive African Sales Company
bull ldquoJames you have provided some key pieces of my jigsaw puzzle now I understand why Business Systems Implementations are failingrdquo
bull ldquoJames we will have to find a consultant who understands ERPrdquo
bull All sorts of opposition
8
In fact hellip
Some very contradictory feedback
Engineers do NOT design bridges to stand up
4
A word of caution
This is a radically different way of looking at Business Information Systems and ERP
Please be open to different ways of thinking
5
Who is James Robertson
1 Civil Engineer
2 Grounding in economics
3 Military strategic training
4 Strategic implementation of business computer systems for over thirty years ndash create sustainable competitive advantage
5 Consulting and facilitating with regard to strategy and strategic solutions for over twenty years
6 Engineering approach to strategic analysis and planning
7 Pioneered methods that work in practice
6
This is NOT in a Text Book
bull Engineeringbull Zoologybull Document cataloguingbull Military combat planningbull Methods of structured software designbull Strategic planning techniquesbull etcbull Dozens of pulse measurements ndash what does NOT work and what doesbull Cataloguing and analysing findingsbull Trial and errorbull Never did process BUT produced excellent resultsbull Then a client told me I was incompetent because I did not do process
bull Proven conclusively process close to irrelevant for ERP
implementation
Process is at BEST an output
7
Pulse measurement
bull A concise diagnostic investigation into why an ERP or other IT investment is NOT delivering what was promised
bull Prescription of what is required to solve the problems
bull Been doing them since 1990 ndash dozens and dozens
Process obsession is increasingly manifesting as a MAJOR cause of failures and sub-optimal
outcomes
In fact business process is close to irrelevant when it comes to designing HIGH VALUE ERP
solutions
Motivating quotes
bull ldquoJames you produce exceptional high value outcomes in ridiculously short time frames at ridiculously low costrdquo ndash Paul Leigh IT Director of the HSRC
bull ldquoJames you transformed what would have been a pedestrian poorly thought out system into an ERP that is already functional and will ultimately transform our analytics and IT offensive capabilities -- Robert Priebatsch Robert Priebatsch Chief Executive African Sales Company
bull ldquoJames you have provided some key pieces of my jigsaw puzzle now I understand why Business Systems Implementations are failingrdquo
bull ldquoJames we will have to find a consultant who understands ERPrdquo
bull All sorts of opposition
8
In fact hellip
Some very contradictory feedback
Engineers do NOT design bridges to stand up
5
Who is James Robertson
1 Civil Engineer
2 Grounding in economics
3 Military strategic training
4 Strategic implementation of business computer systems for over thirty years ndash create sustainable competitive advantage
5 Consulting and facilitating with regard to strategy and strategic solutions for over twenty years
6 Engineering approach to strategic analysis and planning
7 Pioneered methods that work in practice
6
This is NOT in a Text Book
bull Engineeringbull Zoologybull Document cataloguingbull Military combat planningbull Methods of structured software designbull Strategic planning techniquesbull etcbull Dozens of pulse measurements ndash what does NOT work and what doesbull Cataloguing and analysing findingsbull Trial and errorbull Never did process BUT produced excellent resultsbull Then a client told me I was incompetent because I did not do process
bull Proven conclusively process close to irrelevant for ERP
implementation
Process is at BEST an output
7
Pulse measurement
bull A concise diagnostic investigation into why an ERP or other IT investment is NOT delivering what was promised
bull Prescription of what is required to solve the problems
bull Been doing them since 1990 ndash dozens and dozens
Process obsession is increasingly manifesting as a MAJOR cause of failures and sub-optimal
outcomes
In fact business process is close to irrelevant when it comes to designing HIGH VALUE ERP
solutions
Motivating quotes
bull ldquoJames you produce exceptional high value outcomes in ridiculously short time frames at ridiculously low costrdquo ndash Paul Leigh IT Director of the HSRC
bull ldquoJames you transformed what would have been a pedestrian poorly thought out system into an ERP that is already functional and will ultimately transform our analytics and IT offensive capabilities -- Robert Priebatsch Robert Priebatsch Chief Executive African Sales Company
bull ldquoJames you have provided some key pieces of my jigsaw puzzle now I understand why Business Systems Implementations are failingrdquo
bull ldquoJames we will have to find a consultant who understands ERPrdquo
bull All sorts of opposition
8
In fact hellip
Some very contradictory feedback
Engineers do NOT design bridges to stand up
6
This is NOT in a Text Book
bull Engineeringbull Zoologybull Document cataloguingbull Military combat planningbull Methods of structured software designbull Strategic planning techniquesbull etcbull Dozens of pulse measurements ndash what does NOT work and what doesbull Cataloguing and analysing findingsbull Trial and errorbull Never did process BUT produced excellent resultsbull Then a client told me I was incompetent because I did not do process
bull Proven conclusively process close to irrelevant for ERP
implementation
Process is at BEST an output
7
Pulse measurement
bull A concise diagnostic investigation into why an ERP or other IT investment is NOT delivering what was promised
bull Prescription of what is required to solve the problems
bull Been doing them since 1990 ndash dozens and dozens
Process obsession is increasingly manifesting as a MAJOR cause of failures and sub-optimal
outcomes
In fact business process is close to irrelevant when it comes to designing HIGH VALUE ERP
solutions
Motivating quotes
bull ldquoJames you produce exceptional high value outcomes in ridiculously short time frames at ridiculously low costrdquo ndash Paul Leigh IT Director of the HSRC
bull ldquoJames you transformed what would have been a pedestrian poorly thought out system into an ERP that is already functional and will ultimately transform our analytics and IT offensive capabilities -- Robert Priebatsch Robert Priebatsch Chief Executive African Sales Company
bull ldquoJames you have provided some key pieces of my jigsaw puzzle now I understand why Business Systems Implementations are failingrdquo
bull ldquoJames we will have to find a consultant who understands ERPrdquo
bull All sorts of opposition
8
In fact hellip
Some very contradictory feedback
Engineers do NOT design bridges to stand up
7
Pulse measurement
bull A concise diagnostic investigation into why an ERP or other IT investment is NOT delivering what was promised
bull Prescription of what is required to solve the problems
bull Been doing them since 1990 ndash dozens and dozens
Process obsession is increasingly manifesting as a MAJOR cause of failures and sub-optimal
outcomes
In fact business process is close to irrelevant when it comes to designing HIGH VALUE ERP
solutions
Motivating quotes
bull ldquoJames you produce exceptional high value outcomes in ridiculously short time frames at ridiculously low costrdquo ndash Paul Leigh IT Director of the HSRC
bull ldquoJames you transformed what would have been a pedestrian poorly thought out system into an ERP that is already functional and will ultimately transform our analytics and IT offensive capabilities -- Robert Priebatsch Robert Priebatsch Chief Executive African Sales Company
bull ldquoJames you have provided some key pieces of my jigsaw puzzle now I understand why Business Systems Implementations are failingrdquo
bull ldquoJames we will have to find a consultant who understands ERPrdquo
bull All sorts of opposition
8
In fact hellip
Some very contradictory feedback
Engineers do NOT design bridges to stand up
Motivating quotes
bull ldquoJames you produce exceptional high value outcomes in ridiculously short time frames at ridiculously low costrdquo ndash Paul Leigh IT Director of the HSRC
bull ldquoJames you transformed what would have been a pedestrian poorly thought out system into an ERP that is already functional and will ultimately transform our analytics and IT offensive capabilities -- Robert Priebatsch Robert Priebatsch Chief Executive African Sales Company
bull ldquoJames you have provided some key pieces of my jigsaw puzzle now I understand why Business Systems Implementations are failingrdquo
bull ldquoJames we will have to find a consultant who understands ERPrdquo
bull All sorts of opposition
8
In fact hellip
Some very contradictory feedback
Engineers do NOT design bridges to stand up
Engineers do NOT design bridges to stand up
They design bridges NOT to fall down
11
Make your ERP work for you
1 Most executives are FRUSTRATED
2 Why
3 What to do
4 What SMALL changes
5 Unlocking the full potential
Failures are increasingThe threat and therefore the opportunity is huge
Including clinical integration project
13
The fundamental requirements for an ERP
The answers to questions I have not yet thought to askEnable me to run the business MY wayAccurately model every aspect of my businessTotally integrated solutionEntirely reliable and dependableFundamentally support the essence of the business and how it thrives (strategy)Fully support my day to day operational functions
The subject of this presentation is a way in which these requirements can be met in the financial arena
Failures are increasingThe threat and therefore the opportunity is huge
Including clinical integration project
15
ldquo19 out of 20 ERP (integrated business information system) implementations do NOT deliver what was promisedrdquo
ERP an industry in crisisExecutive Opinion
16
Attendees of Gartners Business Intelligence Summit in London last month were not surprised to hear that most enterprises are still failing to use business intelligence (BI) strategically Gartners survey of over 1300 CIOs returned some unimpressive findings about the state of BI implementations Gartners vice president of research summed up the situation nicely by saying
ldquoMost organisations are not making better decisions than they did five years agordquo
An industry characterized by failureA strategic executive outcome
BUSINESS INTELLIGENCEArticle published in Computer Business Review Africa
One of the classic business problems of this age
We have spent a FORTUNE on this computer system and IT tell me it will
take two years and another few million to get what I want BUT the transactions are
being processed already
Some harsh facts
1 Seventy percent of IT investments fail TOTALLY
2 19 out of 20 ERP implementations ldquodo not deliver what was promisedldquo
3 Seventy percent of BPR investments fail
4 Ninety percent of strategic plans fail
ldquoThe next corporate disaster waiting to happenrdquo
Business system failure can trash your business
Professor Richard Nolan ndash Harvard University
Unlocking the TRUE potential of ERPvs The Factors Driving Mediocrity
1 DO NOT know it is possible2 Inappropriate Governance3 Operational investment focus4 No concept of how to deliver strategic advantage5 Lack of a holistic Integrated Business Information Systems (IBIS) view 6 Unaware of the CRITICAL role of the strategic solution architect7 The commercial model of implementation is diametrically opposed to a
high value outcome8 The average rate approach9 Process and as is obsession10Technobabble11Sloppy configuration12Confusion regarding valid customization13Lack of awareness of the benefits of strategic customization14Sloppy CONTRACTS with no accountability15Unconscious incompetence is EVERYWHERE
What is NOT an engineering approach
The engineering approach
A classic practical exampleNO Executive involvement
bull CEO of very big listed corporation in Johannesburg
bull With very big installation
bull Of very big brand ERP
bull Used in advertising
bull ldquoAt the executive level I would rate my systems at 110rdquo
bull ldquoAt the operational level I would rate my systems at 710rdquo
23
110
710BUT even that is being done
with smoke and mirrors
Top down (CEO led)versus bottom up design
24
Top Down ndash Strategy Focused
Bottom Up ndash Process Focused
25
There IS great opportunityERP can and should add value
26
Three alternative ERP value scenarios Unlocking the TRUE potential of ERP IBIS 100 1000 x the norm
1000
1 Current industry norm for process
based ldquoBest Practicerdquo
0
10X 001
100
0
2 Strategic precision
configuration with CEO Executive Custody
X 1
XXX 10
0
3 Strategic customizationWith CEO Custody
This is the ONLY valid scenario but it seldom
occurs
Relative strategic value measured in terms of business competitiveness growth and
profitability
27
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
28
What is strategyAn executive responsibility
Thrive
Strategy ndash Doing the right things
Tact
ics
ndash D
oin
g t
hin
gs
right
SurviveDie slowly
Die fast
Professor Malcolm McDonald
The time dependency of strategy
Professor Malcolm McDonald -- httpwwwmalcolm-mcdonaldcom
The time dependency of strategy
Professor Malcolm McDonald -- httpwwwmalcolm-mcdonaldcom
The time dependency of strategy
Professor Malcolm McDonald
The time dependency of strategyfrom good to GREAT
Analysis of the strategic environmentThe CEO owns this view
34
What IS Strategy
The Essence of WHY the Organization exists and HOW it THRIVES
1 Virtually NEVER changes
2 Intuited
3 Discovered NOT invented
35
Determining the ESSENCE of the business and how it thrives
1 Experienced strategic facilitator
2 Interview each executive one on one starting with the CEO
3 ldquoPlease will you tell me the essence of your business and how it thrives ndash what differentiates you from your competitionrdquo
4 Listen carefully
5 Take lots of notes
6 After completing the interviews synthesize ALL the views to arrive at a SINGLE SENTENCE amplified as necessary with further detail
7 If an executive differs with the CEO then unless the CEO has just arrived the CEOrsquos view must prevail particularly if the CEO is the founder or has been there for many years
8 New executives can be FAR off the mark
36
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
37
There IS great opportunityERP can and should add value
38
Key principles of executive level strategic decision making
1 85 of the basis of executive decision making is soft and tacit information
2 Skim ndash headlines
3 Maximum focus at the start of a report ndash the first page
4 8020 ndash Pareto ndash the Critical Key issues
5 Fast
6 Decisive
7 Right more than wrong
8 High value
9 Intuitive
Critical principle ndash constraint and opportunity -- cognitive span
Drill downA function of the content
41
Personnel Strategically Aligned Key Performance Indicators (KPIrsquos)
Tell me how you want me to behave and I will tell you HOW to measure me
Tell me how you are going to measure me and I will tell you how I am going to behave
Turn it around
Some key considerations with regard to decision making
43
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
Pulse Measurement
1 Concise diagnostic intervention ndash 1 to 10 days
2 Starts with executive interviews ndash understand the Essence of the Business and how it Thrives and Critical Concerns
3 Drill down to systems
4 +- 7 bullet point findings weighted
5 +- 7 recommended actions weighted
6 Findings frequently so obvious and so practical client can continue unaided
7 Strategic advisory and or project leadership to implement recommendations
Analysis of consolidated findings
httpswwwdropboxcomshvfkrz5p5yliwwaryV7SrD6kSh
46
30
1916
14
126 3
1 Mythology hype amp tradition -- 30
2 Lack of executive custody inap-propriate governance and policies -- 19
3 Lack of strategic architecture alignment etc -- 16
4 Lack of data engineering and poor configuration -- 14
5 Soft issues and change impacts -- 12
6 Lack of an engineering approach lack of precision etc -- 6
7 Technology issues -- 3
Factors causing ERP failure
47
22
20
19
17
14
6 2
1Executive custody strategic solution architect accountability -- 22
2 Effective change facilitation -- 20
3 Strategic architecture alignment etc -- 19
4 Data engineering and configuration -- 17
5 Engineering approach design against failure precision etc -- 14
6 Business integration training processes CBT --6
7 Technology -- 2
Factors for ERP reimplementation success
The value of technology is determined by the person using the technology
49
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
bull ldquoEnterprise Resource Planningrdquo = ERP Systemsbull or bull Integrated Business Information Systemsrdquo = IBIS
bull = ALL the information ldquorepositoriesrdquobull = databasesbull = tablesbull = listsbull = filing drawers folders
bull real world items that require description and managementbull
bull + the numerical computations workflow and other activities that are executed with the numbers (and text) stored in these repositories
bull ALL of which can be done by human beings -- including making a messbull
What is an ERP IBISA filing cabinet
51
IBIS ndash what every company REALLY has
Etc etc etc
Custom-ization
In-house custom development
Industry specific package
Brandname ERP = FRED
Spreadsheets
Data warehouse and BI
52
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
53
bull Stalled ERP implementation
bull CEO bought into ldquoERP as a strategic resourcerdquo based on my approach
bull Highly structured strategic Product Class taxonomy
bull Clever software to add products and maintain high quality master data
bull Projects module
bull Brand Management expense taxonomy
bull Clever software to create a project for every brand line with these expense heads
bull Direct integration with General Ledger
bull Comprehensive Brand Project Management and reporting to Principals in Europe
bull New account increased turnover significantly because could do something competitors could NOT do
Dramatic improvements in competitiveness growth and profitability are the ONLY valid arbiters of the success of an ERP implementation or a strategic plan
Case Study Strategic Engineered Precision Configuration WITH Clever Customization to support the ESSENCE
Data engineering
Data engineering principlesCase study
1 ERP Dramatic increase in management information
2 Reduction in head count
3 Dramatic reduction in audit time and cost
4 Unqualified balance sheet first time in 15 years
5 Presented with the client at a public conference
1 Strategic ndash Essence of the Business and how it thrives
2 Engineered ndash rigorous systematic comprehensively tried and tested methods standard conventions expert practitioners etc
3 Precision ndash exact carefully design meticulously fashioned
4 Taxonomies ndash hierarchical information classifications ordering and organizing business information
5 Coupled to precision code schemes which adhere to a number of very specific coding rules and conventions
6 A total solution
Founded on Strategic Engineered Precision Taxonomies (SEPTcopy)
57
Define Strategic Engineered Precision Configuration
bull Configuring the ERP so that it PRECISELY models the real worldbull The goal is that any executive manager supervisor or operator
can look at the configuration and say ldquoYES this IS my businessrdquobull Founded on master data taxonomies ndash structured semantic
contentbull Coupled to custom business specific attributesbull Supplemented by highly structured record level configurationbull Supporting small pieces of clever custom development that add
huge value and create huge strategic and operational opportunities
An ERP is a huge precision data processing factory
Feed it precision data
58
Conventional taxonomy example
ANIMALSELEPHANTSRHINOCEROSDOGSCATS
LIONSLEOPARDSDOMESTIC CATS
Persian CatsDomestic Short Hair Catsetc
59
Taxonomy defined
1 Logical word (semantic structure)
2 Precision vocabulary of preferred terms
3 Conveys understanding between humans with relevant knowledge and experience
4 Once linked to a precision code scheme the most important communication mechanism between computers and people
5 An art and a science
6 Once it is right it is OBVIOUS
Taxonomy example
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
61
Taxonomy relevance
1 Essential to effective operational and strategic use of business software
2 Nearly ALL validation lists (drop down lists) chart of accounts etc
3 Large body of expertise ndash Botany Zoology military filing Library Science Information Management etc
4 Unknown to many (most) IT professionals and business people
62
A computer isAn adding machine calculator
011+1=101+1+1=111+1+1+1=100
Called a ldquobitrdquo
8 bits make a byte
2 bytes make an ASCII character
A= ldquo41rdquo hex
0 1
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
11
Make your ERP work for you
1 Most executives are FRUSTRATED
2 Why
3 What to do
4 What SMALL changes
5 Unlocking the full potential
Failures are increasingThe threat and therefore the opportunity is huge
Including clinical integration project
13
The fundamental requirements for an ERP
The answers to questions I have not yet thought to askEnable me to run the business MY wayAccurately model every aspect of my businessTotally integrated solutionEntirely reliable and dependableFundamentally support the essence of the business and how it thrives (strategy)Fully support my day to day operational functions
The subject of this presentation is a way in which these requirements can be met in the financial arena
Failures are increasingThe threat and therefore the opportunity is huge
Including clinical integration project
15
ldquo19 out of 20 ERP (integrated business information system) implementations do NOT deliver what was promisedrdquo
ERP an industry in crisisExecutive Opinion
16
Attendees of Gartners Business Intelligence Summit in London last month were not surprised to hear that most enterprises are still failing to use business intelligence (BI) strategically Gartners survey of over 1300 CIOs returned some unimpressive findings about the state of BI implementations Gartners vice president of research summed up the situation nicely by saying
ldquoMost organisations are not making better decisions than they did five years agordquo
An industry characterized by failureA strategic executive outcome
BUSINESS INTELLIGENCEArticle published in Computer Business Review Africa
One of the classic business problems of this age
We have spent a FORTUNE on this computer system and IT tell me it will
take two years and another few million to get what I want BUT the transactions are
being processed already
Some harsh facts
1 Seventy percent of IT investments fail TOTALLY
2 19 out of 20 ERP implementations ldquodo not deliver what was promisedldquo
3 Seventy percent of BPR investments fail
4 Ninety percent of strategic plans fail
ldquoThe next corporate disaster waiting to happenrdquo
Business system failure can trash your business
Professor Richard Nolan ndash Harvard University
Unlocking the TRUE potential of ERPvs The Factors Driving Mediocrity
1 DO NOT know it is possible2 Inappropriate Governance3 Operational investment focus4 No concept of how to deliver strategic advantage5 Lack of a holistic Integrated Business Information Systems (IBIS) view 6 Unaware of the CRITICAL role of the strategic solution architect7 The commercial model of implementation is diametrically opposed to a
high value outcome8 The average rate approach9 Process and as is obsession10Technobabble11Sloppy configuration12Confusion regarding valid customization13Lack of awareness of the benefits of strategic customization14Sloppy CONTRACTS with no accountability15Unconscious incompetence is EVERYWHERE
What is NOT an engineering approach
The engineering approach
A classic practical exampleNO Executive involvement
bull CEO of very big listed corporation in Johannesburg
bull With very big installation
bull Of very big brand ERP
bull Used in advertising
bull ldquoAt the executive level I would rate my systems at 110rdquo
bull ldquoAt the operational level I would rate my systems at 710rdquo
23
110
710BUT even that is being done
with smoke and mirrors
Top down (CEO led)versus bottom up design
24
Top Down ndash Strategy Focused
Bottom Up ndash Process Focused
25
There IS great opportunityERP can and should add value
26
Three alternative ERP value scenarios Unlocking the TRUE potential of ERP IBIS 100 1000 x the norm
1000
1 Current industry norm for process
based ldquoBest Practicerdquo
0
10X 001
100
0
2 Strategic precision
configuration with CEO Executive Custody
X 1
XXX 10
0
3 Strategic customizationWith CEO Custody
This is the ONLY valid scenario but it seldom
occurs
Relative strategic value measured in terms of business competitiveness growth and
profitability
27
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
28
What is strategyAn executive responsibility
Thrive
Strategy ndash Doing the right things
Tact
ics
ndash D
oin
g t
hin
gs
right
SurviveDie slowly
Die fast
Professor Malcolm McDonald
The time dependency of strategy
Professor Malcolm McDonald -- httpwwwmalcolm-mcdonaldcom
The time dependency of strategy
Professor Malcolm McDonald -- httpwwwmalcolm-mcdonaldcom
The time dependency of strategy
Professor Malcolm McDonald
The time dependency of strategyfrom good to GREAT
Analysis of the strategic environmentThe CEO owns this view
34
What IS Strategy
The Essence of WHY the Organization exists and HOW it THRIVES
1 Virtually NEVER changes
2 Intuited
3 Discovered NOT invented
35
Determining the ESSENCE of the business and how it thrives
1 Experienced strategic facilitator
2 Interview each executive one on one starting with the CEO
3 ldquoPlease will you tell me the essence of your business and how it thrives ndash what differentiates you from your competitionrdquo
4 Listen carefully
5 Take lots of notes
6 After completing the interviews synthesize ALL the views to arrive at a SINGLE SENTENCE amplified as necessary with further detail
7 If an executive differs with the CEO then unless the CEO has just arrived the CEOrsquos view must prevail particularly if the CEO is the founder or has been there for many years
8 New executives can be FAR off the mark
36
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
37
There IS great opportunityERP can and should add value
38
Key principles of executive level strategic decision making
1 85 of the basis of executive decision making is soft and tacit information
2 Skim ndash headlines
3 Maximum focus at the start of a report ndash the first page
4 8020 ndash Pareto ndash the Critical Key issues
5 Fast
6 Decisive
7 Right more than wrong
8 High value
9 Intuitive
Critical principle ndash constraint and opportunity -- cognitive span
Drill downA function of the content
41
Personnel Strategically Aligned Key Performance Indicators (KPIrsquos)
Tell me how you want me to behave and I will tell you HOW to measure me
Tell me how you are going to measure me and I will tell you how I am going to behave
Turn it around
Some key considerations with regard to decision making
43
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
Pulse Measurement
1 Concise diagnostic intervention ndash 1 to 10 days
2 Starts with executive interviews ndash understand the Essence of the Business and how it Thrives and Critical Concerns
3 Drill down to systems
4 +- 7 bullet point findings weighted
5 +- 7 recommended actions weighted
6 Findings frequently so obvious and so practical client can continue unaided
7 Strategic advisory and or project leadership to implement recommendations
Analysis of consolidated findings
httpswwwdropboxcomshvfkrz5p5yliwwaryV7SrD6kSh
46
30
1916
14
126 3
1 Mythology hype amp tradition -- 30
2 Lack of executive custody inap-propriate governance and policies -- 19
3 Lack of strategic architecture alignment etc -- 16
4 Lack of data engineering and poor configuration -- 14
5 Soft issues and change impacts -- 12
6 Lack of an engineering approach lack of precision etc -- 6
7 Technology issues -- 3
Factors causing ERP failure
47
22
20
19
17
14
6 2
1Executive custody strategic solution architect accountability -- 22
2 Effective change facilitation -- 20
3 Strategic architecture alignment etc -- 19
4 Data engineering and configuration -- 17
5 Engineering approach design against failure precision etc -- 14
6 Business integration training processes CBT --6
7 Technology -- 2
Factors for ERP reimplementation success
The value of technology is determined by the person using the technology
49
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
bull ldquoEnterprise Resource Planningrdquo = ERP Systemsbull or bull Integrated Business Information Systemsrdquo = IBIS
bull = ALL the information ldquorepositoriesrdquobull = databasesbull = tablesbull = listsbull = filing drawers folders
bull real world items that require description and managementbull
bull + the numerical computations workflow and other activities that are executed with the numbers (and text) stored in these repositories
bull ALL of which can be done by human beings -- including making a messbull
What is an ERP IBISA filing cabinet
51
IBIS ndash what every company REALLY has
Etc etc etc
Custom-ization
In-house custom development
Industry specific package
Brandname ERP = FRED
Spreadsheets
Data warehouse and BI
52
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
53
bull Stalled ERP implementation
bull CEO bought into ldquoERP as a strategic resourcerdquo based on my approach
bull Highly structured strategic Product Class taxonomy
bull Clever software to add products and maintain high quality master data
bull Projects module
bull Brand Management expense taxonomy
bull Clever software to create a project for every brand line with these expense heads
bull Direct integration with General Ledger
bull Comprehensive Brand Project Management and reporting to Principals in Europe
bull New account increased turnover significantly because could do something competitors could NOT do
Dramatic improvements in competitiveness growth and profitability are the ONLY valid arbiters of the success of an ERP implementation or a strategic plan
Case Study Strategic Engineered Precision Configuration WITH Clever Customization to support the ESSENCE
Data engineering
Data engineering principlesCase study
1 ERP Dramatic increase in management information
2 Reduction in head count
3 Dramatic reduction in audit time and cost
4 Unqualified balance sheet first time in 15 years
5 Presented with the client at a public conference
1 Strategic ndash Essence of the Business and how it thrives
2 Engineered ndash rigorous systematic comprehensively tried and tested methods standard conventions expert practitioners etc
3 Precision ndash exact carefully design meticulously fashioned
4 Taxonomies ndash hierarchical information classifications ordering and organizing business information
5 Coupled to precision code schemes which adhere to a number of very specific coding rules and conventions
6 A total solution
Founded on Strategic Engineered Precision Taxonomies (SEPTcopy)
57
Define Strategic Engineered Precision Configuration
bull Configuring the ERP so that it PRECISELY models the real worldbull The goal is that any executive manager supervisor or operator
can look at the configuration and say ldquoYES this IS my businessrdquobull Founded on master data taxonomies ndash structured semantic
contentbull Coupled to custom business specific attributesbull Supplemented by highly structured record level configurationbull Supporting small pieces of clever custom development that add
huge value and create huge strategic and operational opportunities
An ERP is a huge precision data processing factory
Feed it precision data
58
Conventional taxonomy example
ANIMALSELEPHANTSRHINOCEROSDOGSCATS
LIONSLEOPARDSDOMESTIC CATS
Persian CatsDomestic Short Hair Catsetc
59
Taxonomy defined
1 Logical word (semantic structure)
2 Precision vocabulary of preferred terms
3 Conveys understanding between humans with relevant knowledge and experience
4 Once linked to a precision code scheme the most important communication mechanism between computers and people
5 An art and a science
6 Once it is right it is OBVIOUS
Taxonomy example
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
61
Taxonomy relevance
1 Essential to effective operational and strategic use of business software
2 Nearly ALL validation lists (drop down lists) chart of accounts etc
3 Large body of expertise ndash Botany Zoology military filing Library Science Information Management etc
4 Unknown to many (most) IT professionals and business people
62
A computer isAn adding machine calculator
011+1=101+1+1=111+1+1+1=100
Called a ldquobitrdquo
8 bits make a byte
2 bytes make an ASCII character
A= ldquo41rdquo hex
0 1
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
Failures are increasingThe threat and therefore the opportunity is huge
Including clinical integration project
13
The fundamental requirements for an ERP
The answers to questions I have not yet thought to askEnable me to run the business MY wayAccurately model every aspect of my businessTotally integrated solutionEntirely reliable and dependableFundamentally support the essence of the business and how it thrives (strategy)Fully support my day to day operational functions
The subject of this presentation is a way in which these requirements can be met in the financial arena
Failures are increasingThe threat and therefore the opportunity is huge
Including clinical integration project
15
ldquo19 out of 20 ERP (integrated business information system) implementations do NOT deliver what was promisedrdquo
ERP an industry in crisisExecutive Opinion
16
Attendees of Gartners Business Intelligence Summit in London last month were not surprised to hear that most enterprises are still failing to use business intelligence (BI) strategically Gartners survey of over 1300 CIOs returned some unimpressive findings about the state of BI implementations Gartners vice president of research summed up the situation nicely by saying
ldquoMost organisations are not making better decisions than they did five years agordquo
An industry characterized by failureA strategic executive outcome
BUSINESS INTELLIGENCEArticle published in Computer Business Review Africa
One of the classic business problems of this age
We have spent a FORTUNE on this computer system and IT tell me it will
take two years and another few million to get what I want BUT the transactions are
being processed already
Some harsh facts
1 Seventy percent of IT investments fail TOTALLY
2 19 out of 20 ERP implementations ldquodo not deliver what was promisedldquo
3 Seventy percent of BPR investments fail
4 Ninety percent of strategic plans fail
ldquoThe next corporate disaster waiting to happenrdquo
Business system failure can trash your business
Professor Richard Nolan ndash Harvard University
Unlocking the TRUE potential of ERPvs The Factors Driving Mediocrity
1 DO NOT know it is possible2 Inappropriate Governance3 Operational investment focus4 No concept of how to deliver strategic advantage5 Lack of a holistic Integrated Business Information Systems (IBIS) view 6 Unaware of the CRITICAL role of the strategic solution architect7 The commercial model of implementation is diametrically opposed to a
high value outcome8 The average rate approach9 Process and as is obsession10Technobabble11Sloppy configuration12Confusion regarding valid customization13Lack of awareness of the benefits of strategic customization14Sloppy CONTRACTS with no accountability15Unconscious incompetence is EVERYWHERE
What is NOT an engineering approach
The engineering approach
A classic practical exampleNO Executive involvement
bull CEO of very big listed corporation in Johannesburg
bull With very big installation
bull Of very big brand ERP
bull Used in advertising
bull ldquoAt the executive level I would rate my systems at 110rdquo
bull ldquoAt the operational level I would rate my systems at 710rdquo
23
110
710BUT even that is being done
with smoke and mirrors
Top down (CEO led)versus bottom up design
24
Top Down ndash Strategy Focused
Bottom Up ndash Process Focused
25
There IS great opportunityERP can and should add value
26
Three alternative ERP value scenarios Unlocking the TRUE potential of ERP IBIS 100 1000 x the norm
1000
1 Current industry norm for process
based ldquoBest Practicerdquo
0
10X 001
100
0
2 Strategic precision
configuration with CEO Executive Custody
X 1
XXX 10
0
3 Strategic customizationWith CEO Custody
This is the ONLY valid scenario but it seldom
occurs
Relative strategic value measured in terms of business competitiveness growth and
profitability
27
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
28
What is strategyAn executive responsibility
Thrive
Strategy ndash Doing the right things
Tact
ics
ndash D
oin
g t
hin
gs
right
SurviveDie slowly
Die fast
Professor Malcolm McDonald
The time dependency of strategy
Professor Malcolm McDonald -- httpwwwmalcolm-mcdonaldcom
The time dependency of strategy
Professor Malcolm McDonald -- httpwwwmalcolm-mcdonaldcom
The time dependency of strategy
Professor Malcolm McDonald
The time dependency of strategyfrom good to GREAT
Analysis of the strategic environmentThe CEO owns this view
34
What IS Strategy
The Essence of WHY the Organization exists and HOW it THRIVES
1 Virtually NEVER changes
2 Intuited
3 Discovered NOT invented
35
Determining the ESSENCE of the business and how it thrives
1 Experienced strategic facilitator
2 Interview each executive one on one starting with the CEO
3 ldquoPlease will you tell me the essence of your business and how it thrives ndash what differentiates you from your competitionrdquo
4 Listen carefully
5 Take lots of notes
6 After completing the interviews synthesize ALL the views to arrive at a SINGLE SENTENCE amplified as necessary with further detail
7 If an executive differs with the CEO then unless the CEO has just arrived the CEOrsquos view must prevail particularly if the CEO is the founder or has been there for many years
8 New executives can be FAR off the mark
36
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
37
There IS great opportunityERP can and should add value
38
Key principles of executive level strategic decision making
1 85 of the basis of executive decision making is soft and tacit information
2 Skim ndash headlines
3 Maximum focus at the start of a report ndash the first page
4 8020 ndash Pareto ndash the Critical Key issues
5 Fast
6 Decisive
7 Right more than wrong
8 High value
9 Intuitive
Critical principle ndash constraint and opportunity -- cognitive span
Drill downA function of the content
41
Personnel Strategically Aligned Key Performance Indicators (KPIrsquos)
Tell me how you want me to behave and I will tell you HOW to measure me
Tell me how you are going to measure me and I will tell you how I am going to behave
Turn it around
Some key considerations with regard to decision making
43
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
Pulse Measurement
1 Concise diagnostic intervention ndash 1 to 10 days
2 Starts with executive interviews ndash understand the Essence of the Business and how it Thrives and Critical Concerns
3 Drill down to systems
4 +- 7 bullet point findings weighted
5 +- 7 recommended actions weighted
6 Findings frequently so obvious and so practical client can continue unaided
7 Strategic advisory and or project leadership to implement recommendations
Analysis of consolidated findings
httpswwwdropboxcomshvfkrz5p5yliwwaryV7SrD6kSh
46
30
1916
14
126 3
1 Mythology hype amp tradition -- 30
2 Lack of executive custody inap-propriate governance and policies -- 19
3 Lack of strategic architecture alignment etc -- 16
4 Lack of data engineering and poor configuration -- 14
5 Soft issues and change impacts -- 12
6 Lack of an engineering approach lack of precision etc -- 6
7 Technology issues -- 3
Factors causing ERP failure
47
22
20
19
17
14
6 2
1Executive custody strategic solution architect accountability -- 22
2 Effective change facilitation -- 20
3 Strategic architecture alignment etc -- 19
4 Data engineering and configuration -- 17
5 Engineering approach design against failure precision etc -- 14
6 Business integration training processes CBT --6
7 Technology -- 2
Factors for ERP reimplementation success
The value of technology is determined by the person using the technology
49
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
bull ldquoEnterprise Resource Planningrdquo = ERP Systemsbull or bull Integrated Business Information Systemsrdquo = IBIS
bull = ALL the information ldquorepositoriesrdquobull = databasesbull = tablesbull = listsbull = filing drawers folders
bull real world items that require description and managementbull
bull + the numerical computations workflow and other activities that are executed with the numbers (and text) stored in these repositories
bull ALL of which can be done by human beings -- including making a messbull
What is an ERP IBISA filing cabinet
51
IBIS ndash what every company REALLY has
Etc etc etc
Custom-ization
In-house custom development
Industry specific package
Brandname ERP = FRED
Spreadsheets
Data warehouse and BI
52
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
53
bull Stalled ERP implementation
bull CEO bought into ldquoERP as a strategic resourcerdquo based on my approach
bull Highly structured strategic Product Class taxonomy
bull Clever software to add products and maintain high quality master data
bull Projects module
bull Brand Management expense taxonomy
bull Clever software to create a project for every brand line with these expense heads
bull Direct integration with General Ledger
bull Comprehensive Brand Project Management and reporting to Principals in Europe
bull New account increased turnover significantly because could do something competitors could NOT do
Dramatic improvements in competitiveness growth and profitability are the ONLY valid arbiters of the success of an ERP implementation or a strategic plan
Case Study Strategic Engineered Precision Configuration WITH Clever Customization to support the ESSENCE
Data engineering
Data engineering principlesCase study
1 ERP Dramatic increase in management information
2 Reduction in head count
3 Dramatic reduction in audit time and cost
4 Unqualified balance sheet first time in 15 years
5 Presented with the client at a public conference
1 Strategic ndash Essence of the Business and how it thrives
2 Engineered ndash rigorous systematic comprehensively tried and tested methods standard conventions expert practitioners etc
3 Precision ndash exact carefully design meticulously fashioned
4 Taxonomies ndash hierarchical information classifications ordering and organizing business information
5 Coupled to precision code schemes which adhere to a number of very specific coding rules and conventions
6 A total solution
Founded on Strategic Engineered Precision Taxonomies (SEPTcopy)
57
Define Strategic Engineered Precision Configuration
bull Configuring the ERP so that it PRECISELY models the real worldbull The goal is that any executive manager supervisor or operator
can look at the configuration and say ldquoYES this IS my businessrdquobull Founded on master data taxonomies ndash structured semantic
contentbull Coupled to custom business specific attributesbull Supplemented by highly structured record level configurationbull Supporting small pieces of clever custom development that add
huge value and create huge strategic and operational opportunities
An ERP is a huge precision data processing factory
Feed it precision data
58
Conventional taxonomy example
ANIMALSELEPHANTSRHINOCEROSDOGSCATS
LIONSLEOPARDSDOMESTIC CATS
Persian CatsDomestic Short Hair Catsetc
59
Taxonomy defined
1 Logical word (semantic structure)
2 Precision vocabulary of preferred terms
3 Conveys understanding between humans with relevant knowledge and experience
4 Once linked to a precision code scheme the most important communication mechanism between computers and people
5 An art and a science
6 Once it is right it is OBVIOUS
Taxonomy example
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
61
Taxonomy relevance
1 Essential to effective operational and strategic use of business software
2 Nearly ALL validation lists (drop down lists) chart of accounts etc
3 Large body of expertise ndash Botany Zoology military filing Library Science Information Management etc
4 Unknown to many (most) IT professionals and business people
62
A computer isAn adding machine calculator
011+1=101+1+1=111+1+1+1=100
Called a ldquobitrdquo
8 bits make a byte
2 bytes make an ASCII character
A= ldquo41rdquo hex
0 1
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
13
The fundamental requirements for an ERP
The answers to questions I have not yet thought to askEnable me to run the business MY wayAccurately model every aspect of my businessTotally integrated solutionEntirely reliable and dependableFundamentally support the essence of the business and how it thrives (strategy)Fully support my day to day operational functions
The subject of this presentation is a way in which these requirements can be met in the financial arena
Failures are increasingThe threat and therefore the opportunity is huge
Including clinical integration project
15
ldquo19 out of 20 ERP (integrated business information system) implementations do NOT deliver what was promisedrdquo
ERP an industry in crisisExecutive Opinion
16
Attendees of Gartners Business Intelligence Summit in London last month were not surprised to hear that most enterprises are still failing to use business intelligence (BI) strategically Gartners survey of over 1300 CIOs returned some unimpressive findings about the state of BI implementations Gartners vice president of research summed up the situation nicely by saying
ldquoMost organisations are not making better decisions than they did five years agordquo
An industry characterized by failureA strategic executive outcome
BUSINESS INTELLIGENCEArticle published in Computer Business Review Africa
One of the classic business problems of this age
We have spent a FORTUNE on this computer system and IT tell me it will
take two years and another few million to get what I want BUT the transactions are
being processed already
Some harsh facts
1 Seventy percent of IT investments fail TOTALLY
2 19 out of 20 ERP implementations ldquodo not deliver what was promisedldquo
3 Seventy percent of BPR investments fail
4 Ninety percent of strategic plans fail
ldquoThe next corporate disaster waiting to happenrdquo
Business system failure can trash your business
Professor Richard Nolan ndash Harvard University
Unlocking the TRUE potential of ERPvs The Factors Driving Mediocrity
1 DO NOT know it is possible2 Inappropriate Governance3 Operational investment focus4 No concept of how to deliver strategic advantage5 Lack of a holistic Integrated Business Information Systems (IBIS) view 6 Unaware of the CRITICAL role of the strategic solution architect7 The commercial model of implementation is diametrically opposed to a
high value outcome8 The average rate approach9 Process and as is obsession10Technobabble11Sloppy configuration12Confusion regarding valid customization13Lack of awareness of the benefits of strategic customization14Sloppy CONTRACTS with no accountability15Unconscious incompetence is EVERYWHERE
What is NOT an engineering approach
The engineering approach
A classic practical exampleNO Executive involvement
bull CEO of very big listed corporation in Johannesburg
bull With very big installation
bull Of very big brand ERP
bull Used in advertising
bull ldquoAt the executive level I would rate my systems at 110rdquo
bull ldquoAt the operational level I would rate my systems at 710rdquo
23
110
710BUT even that is being done
with smoke and mirrors
Top down (CEO led)versus bottom up design
24
Top Down ndash Strategy Focused
Bottom Up ndash Process Focused
25
There IS great opportunityERP can and should add value
26
Three alternative ERP value scenarios Unlocking the TRUE potential of ERP IBIS 100 1000 x the norm
1000
1 Current industry norm for process
based ldquoBest Practicerdquo
0
10X 001
100
0
2 Strategic precision
configuration with CEO Executive Custody
X 1
XXX 10
0
3 Strategic customizationWith CEO Custody
This is the ONLY valid scenario but it seldom
occurs
Relative strategic value measured in terms of business competitiveness growth and
profitability
27
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
28
What is strategyAn executive responsibility
Thrive
Strategy ndash Doing the right things
Tact
ics
ndash D
oin
g t
hin
gs
right
SurviveDie slowly
Die fast
Professor Malcolm McDonald
The time dependency of strategy
Professor Malcolm McDonald -- httpwwwmalcolm-mcdonaldcom
The time dependency of strategy
Professor Malcolm McDonald -- httpwwwmalcolm-mcdonaldcom
The time dependency of strategy
Professor Malcolm McDonald
The time dependency of strategyfrom good to GREAT
Analysis of the strategic environmentThe CEO owns this view
34
What IS Strategy
The Essence of WHY the Organization exists and HOW it THRIVES
1 Virtually NEVER changes
2 Intuited
3 Discovered NOT invented
35
Determining the ESSENCE of the business and how it thrives
1 Experienced strategic facilitator
2 Interview each executive one on one starting with the CEO
3 ldquoPlease will you tell me the essence of your business and how it thrives ndash what differentiates you from your competitionrdquo
4 Listen carefully
5 Take lots of notes
6 After completing the interviews synthesize ALL the views to arrive at a SINGLE SENTENCE amplified as necessary with further detail
7 If an executive differs with the CEO then unless the CEO has just arrived the CEOrsquos view must prevail particularly if the CEO is the founder or has been there for many years
8 New executives can be FAR off the mark
36
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
37
There IS great opportunityERP can and should add value
38
Key principles of executive level strategic decision making
1 85 of the basis of executive decision making is soft and tacit information
2 Skim ndash headlines
3 Maximum focus at the start of a report ndash the first page
4 8020 ndash Pareto ndash the Critical Key issues
5 Fast
6 Decisive
7 Right more than wrong
8 High value
9 Intuitive
Critical principle ndash constraint and opportunity -- cognitive span
Drill downA function of the content
41
Personnel Strategically Aligned Key Performance Indicators (KPIrsquos)
Tell me how you want me to behave and I will tell you HOW to measure me
Tell me how you are going to measure me and I will tell you how I am going to behave
Turn it around
Some key considerations with regard to decision making
43
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
Pulse Measurement
1 Concise diagnostic intervention ndash 1 to 10 days
2 Starts with executive interviews ndash understand the Essence of the Business and how it Thrives and Critical Concerns
3 Drill down to systems
4 +- 7 bullet point findings weighted
5 +- 7 recommended actions weighted
6 Findings frequently so obvious and so practical client can continue unaided
7 Strategic advisory and or project leadership to implement recommendations
Analysis of consolidated findings
httpswwwdropboxcomshvfkrz5p5yliwwaryV7SrD6kSh
46
30
1916
14
126 3
1 Mythology hype amp tradition -- 30
2 Lack of executive custody inap-propriate governance and policies -- 19
3 Lack of strategic architecture alignment etc -- 16
4 Lack of data engineering and poor configuration -- 14
5 Soft issues and change impacts -- 12
6 Lack of an engineering approach lack of precision etc -- 6
7 Technology issues -- 3
Factors causing ERP failure
47
22
20
19
17
14
6 2
1Executive custody strategic solution architect accountability -- 22
2 Effective change facilitation -- 20
3 Strategic architecture alignment etc -- 19
4 Data engineering and configuration -- 17
5 Engineering approach design against failure precision etc -- 14
6 Business integration training processes CBT --6
7 Technology -- 2
Factors for ERP reimplementation success
The value of technology is determined by the person using the technology
49
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
bull ldquoEnterprise Resource Planningrdquo = ERP Systemsbull or bull Integrated Business Information Systemsrdquo = IBIS
bull = ALL the information ldquorepositoriesrdquobull = databasesbull = tablesbull = listsbull = filing drawers folders
bull real world items that require description and managementbull
bull + the numerical computations workflow and other activities that are executed with the numbers (and text) stored in these repositories
bull ALL of which can be done by human beings -- including making a messbull
What is an ERP IBISA filing cabinet
51
IBIS ndash what every company REALLY has
Etc etc etc
Custom-ization
In-house custom development
Industry specific package
Brandname ERP = FRED
Spreadsheets
Data warehouse and BI
52
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
53
bull Stalled ERP implementation
bull CEO bought into ldquoERP as a strategic resourcerdquo based on my approach
bull Highly structured strategic Product Class taxonomy
bull Clever software to add products and maintain high quality master data
bull Projects module
bull Brand Management expense taxonomy
bull Clever software to create a project for every brand line with these expense heads
bull Direct integration with General Ledger
bull Comprehensive Brand Project Management and reporting to Principals in Europe
bull New account increased turnover significantly because could do something competitors could NOT do
Dramatic improvements in competitiveness growth and profitability are the ONLY valid arbiters of the success of an ERP implementation or a strategic plan
Case Study Strategic Engineered Precision Configuration WITH Clever Customization to support the ESSENCE
Data engineering
Data engineering principlesCase study
1 ERP Dramatic increase in management information
2 Reduction in head count
3 Dramatic reduction in audit time and cost
4 Unqualified balance sheet first time in 15 years
5 Presented with the client at a public conference
1 Strategic ndash Essence of the Business and how it thrives
2 Engineered ndash rigorous systematic comprehensively tried and tested methods standard conventions expert practitioners etc
3 Precision ndash exact carefully design meticulously fashioned
4 Taxonomies ndash hierarchical information classifications ordering and organizing business information
5 Coupled to precision code schemes which adhere to a number of very specific coding rules and conventions
6 A total solution
Founded on Strategic Engineered Precision Taxonomies (SEPTcopy)
57
Define Strategic Engineered Precision Configuration
bull Configuring the ERP so that it PRECISELY models the real worldbull The goal is that any executive manager supervisor or operator
can look at the configuration and say ldquoYES this IS my businessrdquobull Founded on master data taxonomies ndash structured semantic
contentbull Coupled to custom business specific attributesbull Supplemented by highly structured record level configurationbull Supporting small pieces of clever custom development that add
huge value and create huge strategic and operational opportunities
An ERP is a huge precision data processing factory
Feed it precision data
58
Conventional taxonomy example
ANIMALSELEPHANTSRHINOCEROSDOGSCATS
LIONSLEOPARDSDOMESTIC CATS
Persian CatsDomestic Short Hair Catsetc
59
Taxonomy defined
1 Logical word (semantic structure)
2 Precision vocabulary of preferred terms
3 Conveys understanding between humans with relevant knowledge and experience
4 Once linked to a precision code scheme the most important communication mechanism between computers and people
5 An art and a science
6 Once it is right it is OBVIOUS
Taxonomy example
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
61
Taxonomy relevance
1 Essential to effective operational and strategic use of business software
2 Nearly ALL validation lists (drop down lists) chart of accounts etc
3 Large body of expertise ndash Botany Zoology military filing Library Science Information Management etc
4 Unknown to many (most) IT professionals and business people
62
A computer isAn adding machine calculator
011+1=101+1+1=111+1+1+1=100
Called a ldquobitrdquo
8 bits make a byte
2 bytes make an ASCII character
A= ldquo41rdquo hex
0 1
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
Failures are increasingThe threat and therefore the opportunity is huge
Including clinical integration project
15
ldquo19 out of 20 ERP (integrated business information system) implementations do NOT deliver what was promisedrdquo
ERP an industry in crisisExecutive Opinion
16
Attendees of Gartners Business Intelligence Summit in London last month were not surprised to hear that most enterprises are still failing to use business intelligence (BI) strategically Gartners survey of over 1300 CIOs returned some unimpressive findings about the state of BI implementations Gartners vice president of research summed up the situation nicely by saying
ldquoMost organisations are not making better decisions than they did five years agordquo
An industry characterized by failureA strategic executive outcome
BUSINESS INTELLIGENCEArticle published in Computer Business Review Africa
One of the classic business problems of this age
We have spent a FORTUNE on this computer system and IT tell me it will
take two years and another few million to get what I want BUT the transactions are
being processed already
Some harsh facts
1 Seventy percent of IT investments fail TOTALLY
2 19 out of 20 ERP implementations ldquodo not deliver what was promisedldquo
3 Seventy percent of BPR investments fail
4 Ninety percent of strategic plans fail
ldquoThe next corporate disaster waiting to happenrdquo
Business system failure can trash your business
Professor Richard Nolan ndash Harvard University
Unlocking the TRUE potential of ERPvs The Factors Driving Mediocrity
1 DO NOT know it is possible2 Inappropriate Governance3 Operational investment focus4 No concept of how to deliver strategic advantage5 Lack of a holistic Integrated Business Information Systems (IBIS) view 6 Unaware of the CRITICAL role of the strategic solution architect7 The commercial model of implementation is diametrically opposed to a
high value outcome8 The average rate approach9 Process and as is obsession10Technobabble11Sloppy configuration12Confusion regarding valid customization13Lack of awareness of the benefits of strategic customization14Sloppy CONTRACTS with no accountability15Unconscious incompetence is EVERYWHERE
What is NOT an engineering approach
The engineering approach
A classic practical exampleNO Executive involvement
bull CEO of very big listed corporation in Johannesburg
bull With very big installation
bull Of very big brand ERP
bull Used in advertising
bull ldquoAt the executive level I would rate my systems at 110rdquo
bull ldquoAt the operational level I would rate my systems at 710rdquo
23
110
710BUT even that is being done
with smoke and mirrors
Top down (CEO led)versus bottom up design
24
Top Down ndash Strategy Focused
Bottom Up ndash Process Focused
25
There IS great opportunityERP can and should add value
26
Three alternative ERP value scenarios Unlocking the TRUE potential of ERP IBIS 100 1000 x the norm
1000
1 Current industry norm for process
based ldquoBest Practicerdquo
0
10X 001
100
0
2 Strategic precision
configuration with CEO Executive Custody
X 1
XXX 10
0
3 Strategic customizationWith CEO Custody
This is the ONLY valid scenario but it seldom
occurs
Relative strategic value measured in terms of business competitiveness growth and
profitability
27
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
28
What is strategyAn executive responsibility
Thrive
Strategy ndash Doing the right things
Tact
ics
ndash D
oin
g t
hin
gs
right
SurviveDie slowly
Die fast
Professor Malcolm McDonald
The time dependency of strategy
Professor Malcolm McDonald -- httpwwwmalcolm-mcdonaldcom
The time dependency of strategy
Professor Malcolm McDonald -- httpwwwmalcolm-mcdonaldcom
The time dependency of strategy
Professor Malcolm McDonald
The time dependency of strategyfrom good to GREAT
Analysis of the strategic environmentThe CEO owns this view
34
What IS Strategy
The Essence of WHY the Organization exists and HOW it THRIVES
1 Virtually NEVER changes
2 Intuited
3 Discovered NOT invented
35
Determining the ESSENCE of the business and how it thrives
1 Experienced strategic facilitator
2 Interview each executive one on one starting with the CEO
3 ldquoPlease will you tell me the essence of your business and how it thrives ndash what differentiates you from your competitionrdquo
4 Listen carefully
5 Take lots of notes
6 After completing the interviews synthesize ALL the views to arrive at a SINGLE SENTENCE amplified as necessary with further detail
7 If an executive differs with the CEO then unless the CEO has just arrived the CEOrsquos view must prevail particularly if the CEO is the founder or has been there for many years
8 New executives can be FAR off the mark
36
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
37
There IS great opportunityERP can and should add value
38
Key principles of executive level strategic decision making
1 85 of the basis of executive decision making is soft and tacit information
2 Skim ndash headlines
3 Maximum focus at the start of a report ndash the first page
4 8020 ndash Pareto ndash the Critical Key issues
5 Fast
6 Decisive
7 Right more than wrong
8 High value
9 Intuitive
Critical principle ndash constraint and opportunity -- cognitive span
Drill downA function of the content
41
Personnel Strategically Aligned Key Performance Indicators (KPIrsquos)
Tell me how you want me to behave and I will tell you HOW to measure me
Tell me how you are going to measure me and I will tell you how I am going to behave
Turn it around
Some key considerations with regard to decision making
43
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
Pulse Measurement
1 Concise diagnostic intervention ndash 1 to 10 days
2 Starts with executive interviews ndash understand the Essence of the Business and how it Thrives and Critical Concerns
3 Drill down to systems
4 +- 7 bullet point findings weighted
5 +- 7 recommended actions weighted
6 Findings frequently so obvious and so practical client can continue unaided
7 Strategic advisory and or project leadership to implement recommendations
Analysis of consolidated findings
httpswwwdropboxcomshvfkrz5p5yliwwaryV7SrD6kSh
46
30
1916
14
126 3
1 Mythology hype amp tradition -- 30
2 Lack of executive custody inap-propriate governance and policies -- 19
3 Lack of strategic architecture alignment etc -- 16
4 Lack of data engineering and poor configuration -- 14
5 Soft issues and change impacts -- 12
6 Lack of an engineering approach lack of precision etc -- 6
7 Technology issues -- 3
Factors causing ERP failure
47
22
20
19
17
14
6 2
1Executive custody strategic solution architect accountability -- 22
2 Effective change facilitation -- 20
3 Strategic architecture alignment etc -- 19
4 Data engineering and configuration -- 17
5 Engineering approach design against failure precision etc -- 14
6 Business integration training processes CBT --6
7 Technology -- 2
Factors for ERP reimplementation success
The value of technology is determined by the person using the technology
49
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
bull ldquoEnterprise Resource Planningrdquo = ERP Systemsbull or bull Integrated Business Information Systemsrdquo = IBIS
bull = ALL the information ldquorepositoriesrdquobull = databasesbull = tablesbull = listsbull = filing drawers folders
bull real world items that require description and managementbull
bull + the numerical computations workflow and other activities that are executed with the numbers (and text) stored in these repositories
bull ALL of which can be done by human beings -- including making a messbull
What is an ERP IBISA filing cabinet
51
IBIS ndash what every company REALLY has
Etc etc etc
Custom-ization
In-house custom development
Industry specific package
Brandname ERP = FRED
Spreadsheets
Data warehouse and BI
52
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
53
bull Stalled ERP implementation
bull CEO bought into ldquoERP as a strategic resourcerdquo based on my approach
bull Highly structured strategic Product Class taxonomy
bull Clever software to add products and maintain high quality master data
bull Projects module
bull Brand Management expense taxonomy
bull Clever software to create a project for every brand line with these expense heads
bull Direct integration with General Ledger
bull Comprehensive Brand Project Management and reporting to Principals in Europe
bull New account increased turnover significantly because could do something competitors could NOT do
Dramatic improvements in competitiveness growth and profitability are the ONLY valid arbiters of the success of an ERP implementation or a strategic plan
Case Study Strategic Engineered Precision Configuration WITH Clever Customization to support the ESSENCE
Data engineering
Data engineering principlesCase study
1 ERP Dramatic increase in management information
2 Reduction in head count
3 Dramatic reduction in audit time and cost
4 Unqualified balance sheet first time in 15 years
5 Presented with the client at a public conference
1 Strategic ndash Essence of the Business and how it thrives
2 Engineered ndash rigorous systematic comprehensively tried and tested methods standard conventions expert practitioners etc
3 Precision ndash exact carefully design meticulously fashioned
4 Taxonomies ndash hierarchical information classifications ordering and organizing business information
5 Coupled to precision code schemes which adhere to a number of very specific coding rules and conventions
6 A total solution
Founded on Strategic Engineered Precision Taxonomies (SEPTcopy)
57
Define Strategic Engineered Precision Configuration
bull Configuring the ERP so that it PRECISELY models the real worldbull The goal is that any executive manager supervisor or operator
can look at the configuration and say ldquoYES this IS my businessrdquobull Founded on master data taxonomies ndash structured semantic
contentbull Coupled to custom business specific attributesbull Supplemented by highly structured record level configurationbull Supporting small pieces of clever custom development that add
huge value and create huge strategic and operational opportunities
An ERP is a huge precision data processing factory
Feed it precision data
58
Conventional taxonomy example
ANIMALSELEPHANTSRHINOCEROSDOGSCATS
LIONSLEOPARDSDOMESTIC CATS
Persian CatsDomestic Short Hair Catsetc
59
Taxonomy defined
1 Logical word (semantic structure)
2 Precision vocabulary of preferred terms
3 Conveys understanding between humans with relevant knowledge and experience
4 Once linked to a precision code scheme the most important communication mechanism between computers and people
5 An art and a science
6 Once it is right it is OBVIOUS
Taxonomy example
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
61
Taxonomy relevance
1 Essential to effective operational and strategic use of business software
2 Nearly ALL validation lists (drop down lists) chart of accounts etc
3 Large body of expertise ndash Botany Zoology military filing Library Science Information Management etc
4 Unknown to many (most) IT professionals and business people
62
A computer isAn adding machine calculator
011+1=101+1+1=111+1+1+1=100
Called a ldquobitrdquo
8 bits make a byte
2 bytes make an ASCII character
A= ldquo41rdquo hex
0 1
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
15
ldquo19 out of 20 ERP (integrated business information system) implementations do NOT deliver what was promisedrdquo
ERP an industry in crisisExecutive Opinion
16
Attendees of Gartners Business Intelligence Summit in London last month were not surprised to hear that most enterprises are still failing to use business intelligence (BI) strategically Gartners survey of over 1300 CIOs returned some unimpressive findings about the state of BI implementations Gartners vice president of research summed up the situation nicely by saying
ldquoMost organisations are not making better decisions than they did five years agordquo
An industry characterized by failureA strategic executive outcome
BUSINESS INTELLIGENCEArticle published in Computer Business Review Africa
One of the classic business problems of this age
We have spent a FORTUNE on this computer system and IT tell me it will
take two years and another few million to get what I want BUT the transactions are
being processed already
Some harsh facts
1 Seventy percent of IT investments fail TOTALLY
2 19 out of 20 ERP implementations ldquodo not deliver what was promisedldquo
3 Seventy percent of BPR investments fail
4 Ninety percent of strategic plans fail
ldquoThe next corporate disaster waiting to happenrdquo
Business system failure can trash your business
Professor Richard Nolan ndash Harvard University
Unlocking the TRUE potential of ERPvs The Factors Driving Mediocrity
1 DO NOT know it is possible2 Inappropriate Governance3 Operational investment focus4 No concept of how to deliver strategic advantage5 Lack of a holistic Integrated Business Information Systems (IBIS) view 6 Unaware of the CRITICAL role of the strategic solution architect7 The commercial model of implementation is diametrically opposed to a
high value outcome8 The average rate approach9 Process and as is obsession10Technobabble11Sloppy configuration12Confusion regarding valid customization13Lack of awareness of the benefits of strategic customization14Sloppy CONTRACTS with no accountability15Unconscious incompetence is EVERYWHERE
What is NOT an engineering approach
The engineering approach
A classic practical exampleNO Executive involvement
bull CEO of very big listed corporation in Johannesburg
bull With very big installation
bull Of very big brand ERP
bull Used in advertising
bull ldquoAt the executive level I would rate my systems at 110rdquo
bull ldquoAt the operational level I would rate my systems at 710rdquo
23
110
710BUT even that is being done
with smoke and mirrors
Top down (CEO led)versus bottom up design
24
Top Down ndash Strategy Focused
Bottom Up ndash Process Focused
25
There IS great opportunityERP can and should add value
26
Three alternative ERP value scenarios Unlocking the TRUE potential of ERP IBIS 100 1000 x the norm
1000
1 Current industry norm for process
based ldquoBest Practicerdquo
0
10X 001
100
0
2 Strategic precision
configuration with CEO Executive Custody
X 1
XXX 10
0
3 Strategic customizationWith CEO Custody
This is the ONLY valid scenario but it seldom
occurs
Relative strategic value measured in terms of business competitiveness growth and
profitability
27
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
28
What is strategyAn executive responsibility
Thrive
Strategy ndash Doing the right things
Tact
ics
ndash D
oin
g t
hin
gs
right
SurviveDie slowly
Die fast
Professor Malcolm McDonald
The time dependency of strategy
Professor Malcolm McDonald -- httpwwwmalcolm-mcdonaldcom
The time dependency of strategy
Professor Malcolm McDonald -- httpwwwmalcolm-mcdonaldcom
The time dependency of strategy
Professor Malcolm McDonald
The time dependency of strategyfrom good to GREAT
Analysis of the strategic environmentThe CEO owns this view
34
What IS Strategy
The Essence of WHY the Organization exists and HOW it THRIVES
1 Virtually NEVER changes
2 Intuited
3 Discovered NOT invented
35
Determining the ESSENCE of the business and how it thrives
1 Experienced strategic facilitator
2 Interview each executive one on one starting with the CEO
3 ldquoPlease will you tell me the essence of your business and how it thrives ndash what differentiates you from your competitionrdquo
4 Listen carefully
5 Take lots of notes
6 After completing the interviews synthesize ALL the views to arrive at a SINGLE SENTENCE amplified as necessary with further detail
7 If an executive differs with the CEO then unless the CEO has just arrived the CEOrsquos view must prevail particularly if the CEO is the founder or has been there for many years
8 New executives can be FAR off the mark
36
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
37
There IS great opportunityERP can and should add value
38
Key principles of executive level strategic decision making
1 85 of the basis of executive decision making is soft and tacit information
2 Skim ndash headlines
3 Maximum focus at the start of a report ndash the first page
4 8020 ndash Pareto ndash the Critical Key issues
5 Fast
6 Decisive
7 Right more than wrong
8 High value
9 Intuitive
Critical principle ndash constraint and opportunity -- cognitive span
Drill downA function of the content
41
Personnel Strategically Aligned Key Performance Indicators (KPIrsquos)
Tell me how you want me to behave and I will tell you HOW to measure me
Tell me how you are going to measure me and I will tell you how I am going to behave
Turn it around
Some key considerations with regard to decision making
43
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
Pulse Measurement
1 Concise diagnostic intervention ndash 1 to 10 days
2 Starts with executive interviews ndash understand the Essence of the Business and how it Thrives and Critical Concerns
3 Drill down to systems
4 +- 7 bullet point findings weighted
5 +- 7 recommended actions weighted
6 Findings frequently so obvious and so practical client can continue unaided
7 Strategic advisory and or project leadership to implement recommendations
Analysis of consolidated findings
httpswwwdropboxcomshvfkrz5p5yliwwaryV7SrD6kSh
46
30
1916
14
126 3
1 Mythology hype amp tradition -- 30
2 Lack of executive custody inap-propriate governance and policies -- 19
3 Lack of strategic architecture alignment etc -- 16
4 Lack of data engineering and poor configuration -- 14
5 Soft issues and change impacts -- 12
6 Lack of an engineering approach lack of precision etc -- 6
7 Technology issues -- 3
Factors causing ERP failure
47
22
20
19
17
14
6 2
1Executive custody strategic solution architect accountability -- 22
2 Effective change facilitation -- 20
3 Strategic architecture alignment etc -- 19
4 Data engineering and configuration -- 17
5 Engineering approach design against failure precision etc -- 14
6 Business integration training processes CBT --6
7 Technology -- 2
Factors for ERP reimplementation success
The value of technology is determined by the person using the technology
49
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
bull ldquoEnterprise Resource Planningrdquo = ERP Systemsbull or bull Integrated Business Information Systemsrdquo = IBIS
bull = ALL the information ldquorepositoriesrdquobull = databasesbull = tablesbull = listsbull = filing drawers folders
bull real world items that require description and managementbull
bull + the numerical computations workflow and other activities that are executed with the numbers (and text) stored in these repositories
bull ALL of which can be done by human beings -- including making a messbull
What is an ERP IBISA filing cabinet
51
IBIS ndash what every company REALLY has
Etc etc etc
Custom-ization
In-house custom development
Industry specific package
Brandname ERP = FRED
Spreadsheets
Data warehouse and BI
52
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
53
bull Stalled ERP implementation
bull CEO bought into ldquoERP as a strategic resourcerdquo based on my approach
bull Highly structured strategic Product Class taxonomy
bull Clever software to add products and maintain high quality master data
bull Projects module
bull Brand Management expense taxonomy
bull Clever software to create a project for every brand line with these expense heads
bull Direct integration with General Ledger
bull Comprehensive Brand Project Management and reporting to Principals in Europe
bull New account increased turnover significantly because could do something competitors could NOT do
Dramatic improvements in competitiveness growth and profitability are the ONLY valid arbiters of the success of an ERP implementation or a strategic plan
Case Study Strategic Engineered Precision Configuration WITH Clever Customization to support the ESSENCE
Data engineering
Data engineering principlesCase study
1 ERP Dramatic increase in management information
2 Reduction in head count
3 Dramatic reduction in audit time and cost
4 Unqualified balance sheet first time in 15 years
5 Presented with the client at a public conference
1 Strategic ndash Essence of the Business and how it thrives
2 Engineered ndash rigorous systematic comprehensively tried and tested methods standard conventions expert practitioners etc
3 Precision ndash exact carefully design meticulously fashioned
4 Taxonomies ndash hierarchical information classifications ordering and organizing business information
5 Coupled to precision code schemes which adhere to a number of very specific coding rules and conventions
6 A total solution
Founded on Strategic Engineered Precision Taxonomies (SEPTcopy)
57
Define Strategic Engineered Precision Configuration
bull Configuring the ERP so that it PRECISELY models the real worldbull The goal is that any executive manager supervisor or operator
can look at the configuration and say ldquoYES this IS my businessrdquobull Founded on master data taxonomies ndash structured semantic
contentbull Coupled to custom business specific attributesbull Supplemented by highly structured record level configurationbull Supporting small pieces of clever custom development that add
huge value and create huge strategic and operational opportunities
An ERP is a huge precision data processing factory
Feed it precision data
58
Conventional taxonomy example
ANIMALSELEPHANTSRHINOCEROSDOGSCATS
LIONSLEOPARDSDOMESTIC CATS
Persian CatsDomestic Short Hair Catsetc
59
Taxonomy defined
1 Logical word (semantic structure)
2 Precision vocabulary of preferred terms
3 Conveys understanding between humans with relevant knowledge and experience
4 Once linked to a precision code scheme the most important communication mechanism between computers and people
5 An art and a science
6 Once it is right it is OBVIOUS
Taxonomy example
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
61
Taxonomy relevance
1 Essential to effective operational and strategic use of business software
2 Nearly ALL validation lists (drop down lists) chart of accounts etc
3 Large body of expertise ndash Botany Zoology military filing Library Science Information Management etc
4 Unknown to many (most) IT professionals and business people
62
A computer isAn adding machine calculator
011+1=101+1+1=111+1+1+1=100
Called a ldquobitrdquo
8 bits make a byte
2 bytes make an ASCII character
A= ldquo41rdquo hex
0 1
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
16
Attendees of Gartners Business Intelligence Summit in London last month were not surprised to hear that most enterprises are still failing to use business intelligence (BI) strategically Gartners survey of over 1300 CIOs returned some unimpressive findings about the state of BI implementations Gartners vice president of research summed up the situation nicely by saying
ldquoMost organisations are not making better decisions than they did five years agordquo
An industry characterized by failureA strategic executive outcome
BUSINESS INTELLIGENCEArticle published in Computer Business Review Africa
One of the classic business problems of this age
We have spent a FORTUNE on this computer system and IT tell me it will
take two years and another few million to get what I want BUT the transactions are
being processed already
Some harsh facts
1 Seventy percent of IT investments fail TOTALLY
2 19 out of 20 ERP implementations ldquodo not deliver what was promisedldquo
3 Seventy percent of BPR investments fail
4 Ninety percent of strategic plans fail
ldquoThe next corporate disaster waiting to happenrdquo
Business system failure can trash your business
Professor Richard Nolan ndash Harvard University
Unlocking the TRUE potential of ERPvs The Factors Driving Mediocrity
1 DO NOT know it is possible2 Inappropriate Governance3 Operational investment focus4 No concept of how to deliver strategic advantage5 Lack of a holistic Integrated Business Information Systems (IBIS) view 6 Unaware of the CRITICAL role of the strategic solution architect7 The commercial model of implementation is diametrically opposed to a
high value outcome8 The average rate approach9 Process and as is obsession10Technobabble11Sloppy configuration12Confusion regarding valid customization13Lack of awareness of the benefits of strategic customization14Sloppy CONTRACTS with no accountability15Unconscious incompetence is EVERYWHERE
What is NOT an engineering approach
The engineering approach
A classic practical exampleNO Executive involvement
bull CEO of very big listed corporation in Johannesburg
bull With very big installation
bull Of very big brand ERP
bull Used in advertising
bull ldquoAt the executive level I would rate my systems at 110rdquo
bull ldquoAt the operational level I would rate my systems at 710rdquo
23
110
710BUT even that is being done
with smoke and mirrors
Top down (CEO led)versus bottom up design
24
Top Down ndash Strategy Focused
Bottom Up ndash Process Focused
25
There IS great opportunityERP can and should add value
26
Three alternative ERP value scenarios Unlocking the TRUE potential of ERP IBIS 100 1000 x the norm
1000
1 Current industry norm for process
based ldquoBest Practicerdquo
0
10X 001
100
0
2 Strategic precision
configuration with CEO Executive Custody
X 1
XXX 10
0
3 Strategic customizationWith CEO Custody
This is the ONLY valid scenario but it seldom
occurs
Relative strategic value measured in terms of business competitiveness growth and
profitability
27
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
28
What is strategyAn executive responsibility
Thrive
Strategy ndash Doing the right things
Tact
ics
ndash D
oin
g t
hin
gs
right
SurviveDie slowly
Die fast
Professor Malcolm McDonald
The time dependency of strategy
Professor Malcolm McDonald -- httpwwwmalcolm-mcdonaldcom
The time dependency of strategy
Professor Malcolm McDonald -- httpwwwmalcolm-mcdonaldcom
The time dependency of strategy
Professor Malcolm McDonald
The time dependency of strategyfrom good to GREAT
Analysis of the strategic environmentThe CEO owns this view
34
What IS Strategy
The Essence of WHY the Organization exists and HOW it THRIVES
1 Virtually NEVER changes
2 Intuited
3 Discovered NOT invented
35
Determining the ESSENCE of the business and how it thrives
1 Experienced strategic facilitator
2 Interview each executive one on one starting with the CEO
3 ldquoPlease will you tell me the essence of your business and how it thrives ndash what differentiates you from your competitionrdquo
4 Listen carefully
5 Take lots of notes
6 After completing the interviews synthesize ALL the views to arrive at a SINGLE SENTENCE amplified as necessary with further detail
7 If an executive differs with the CEO then unless the CEO has just arrived the CEOrsquos view must prevail particularly if the CEO is the founder or has been there for many years
8 New executives can be FAR off the mark
36
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
37
There IS great opportunityERP can and should add value
38
Key principles of executive level strategic decision making
1 85 of the basis of executive decision making is soft and tacit information
2 Skim ndash headlines
3 Maximum focus at the start of a report ndash the first page
4 8020 ndash Pareto ndash the Critical Key issues
5 Fast
6 Decisive
7 Right more than wrong
8 High value
9 Intuitive
Critical principle ndash constraint and opportunity -- cognitive span
Drill downA function of the content
41
Personnel Strategically Aligned Key Performance Indicators (KPIrsquos)
Tell me how you want me to behave and I will tell you HOW to measure me
Tell me how you are going to measure me and I will tell you how I am going to behave
Turn it around
Some key considerations with regard to decision making
43
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
Pulse Measurement
1 Concise diagnostic intervention ndash 1 to 10 days
2 Starts with executive interviews ndash understand the Essence of the Business and how it Thrives and Critical Concerns
3 Drill down to systems
4 +- 7 bullet point findings weighted
5 +- 7 recommended actions weighted
6 Findings frequently so obvious and so practical client can continue unaided
7 Strategic advisory and or project leadership to implement recommendations
Analysis of consolidated findings
httpswwwdropboxcomshvfkrz5p5yliwwaryV7SrD6kSh
46
30
1916
14
126 3
1 Mythology hype amp tradition -- 30
2 Lack of executive custody inap-propriate governance and policies -- 19
3 Lack of strategic architecture alignment etc -- 16
4 Lack of data engineering and poor configuration -- 14
5 Soft issues and change impacts -- 12
6 Lack of an engineering approach lack of precision etc -- 6
7 Technology issues -- 3
Factors causing ERP failure
47
22
20
19
17
14
6 2
1Executive custody strategic solution architect accountability -- 22
2 Effective change facilitation -- 20
3 Strategic architecture alignment etc -- 19
4 Data engineering and configuration -- 17
5 Engineering approach design against failure precision etc -- 14
6 Business integration training processes CBT --6
7 Technology -- 2
Factors for ERP reimplementation success
The value of technology is determined by the person using the technology
49
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
bull ldquoEnterprise Resource Planningrdquo = ERP Systemsbull or bull Integrated Business Information Systemsrdquo = IBIS
bull = ALL the information ldquorepositoriesrdquobull = databasesbull = tablesbull = listsbull = filing drawers folders
bull real world items that require description and managementbull
bull + the numerical computations workflow and other activities that are executed with the numbers (and text) stored in these repositories
bull ALL of which can be done by human beings -- including making a messbull
What is an ERP IBISA filing cabinet
51
IBIS ndash what every company REALLY has
Etc etc etc
Custom-ization
In-house custom development
Industry specific package
Brandname ERP = FRED
Spreadsheets
Data warehouse and BI
52
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
53
bull Stalled ERP implementation
bull CEO bought into ldquoERP as a strategic resourcerdquo based on my approach
bull Highly structured strategic Product Class taxonomy
bull Clever software to add products and maintain high quality master data
bull Projects module
bull Brand Management expense taxonomy
bull Clever software to create a project for every brand line with these expense heads
bull Direct integration with General Ledger
bull Comprehensive Brand Project Management and reporting to Principals in Europe
bull New account increased turnover significantly because could do something competitors could NOT do
Dramatic improvements in competitiveness growth and profitability are the ONLY valid arbiters of the success of an ERP implementation or a strategic plan
Case Study Strategic Engineered Precision Configuration WITH Clever Customization to support the ESSENCE
Data engineering
Data engineering principlesCase study
1 ERP Dramatic increase in management information
2 Reduction in head count
3 Dramatic reduction in audit time and cost
4 Unqualified balance sheet first time in 15 years
5 Presented with the client at a public conference
1 Strategic ndash Essence of the Business and how it thrives
2 Engineered ndash rigorous systematic comprehensively tried and tested methods standard conventions expert practitioners etc
3 Precision ndash exact carefully design meticulously fashioned
4 Taxonomies ndash hierarchical information classifications ordering and organizing business information
5 Coupled to precision code schemes which adhere to a number of very specific coding rules and conventions
6 A total solution
Founded on Strategic Engineered Precision Taxonomies (SEPTcopy)
57
Define Strategic Engineered Precision Configuration
bull Configuring the ERP so that it PRECISELY models the real worldbull The goal is that any executive manager supervisor or operator
can look at the configuration and say ldquoYES this IS my businessrdquobull Founded on master data taxonomies ndash structured semantic
contentbull Coupled to custom business specific attributesbull Supplemented by highly structured record level configurationbull Supporting small pieces of clever custom development that add
huge value and create huge strategic and operational opportunities
An ERP is a huge precision data processing factory
Feed it precision data
58
Conventional taxonomy example
ANIMALSELEPHANTSRHINOCEROSDOGSCATS
LIONSLEOPARDSDOMESTIC CATS
Persian CatsDomestic Short Hair Catsetc
59
Taxonomy defined
1 Logical word (semantic structure)
2 Precision vocabulary of preferred terms
3 Conveys understanding between humans with relevant knowledge and experience
4 Once linked to a precision code scheme the most important communication mechanism between computers and people
5 An art and a science
6 Once it is right it is OBVIOUS
Taxonomy example
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
61
Taxonomy relevance
1 Essential to effective operational and strategic use of business software
2 Nearly ALL validation lists (drop down lists) chart of accounts etc
3 Large body of expertise ndash Botany Zoology military filing Library Science Information Management etc
4 Unknown to many (most) IT professionals and business people
62
A computer isAn adding machine calculator
011+1=101+1+1=111+1+1+1=100
Called a ldquobitrdquo
8 bits make a byte
2 bytes make an ASCII character
A= ldquo41rdquo hex
0 1
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
One of the classic business problems of this age
We have spent a FORTUNE on this computer system and IT tell me it will
take two years and another few million to get what I want BUT the transactions are
being processed already
Some harsh facts
1 Seventy percent of IT investments fail TOTALLY
2 19 out of 20 ERP implementations ldquodo not deliver what was promisedldquo
3 Seventy percent of BPR investments fail
4 Ninety percent of strategic plans fail
ldquoThe next corporate disaster waiting to happenrdquo
Business system failure can trash your business
Professor Richard Nolan ndash Harvard University
Unlocking the TRUE potential of ERPvs The Factors Driving Mediocrity
1 DO NOT know it is possible2 Inappropriate Governance3 Operational investment focus4 No concept of how to deliver strategic advantage5 Lack of a holistic Integrated Business Information Systems (IBIS) view 6 Unaware of the CRITICAL role of the strategic solution architect7 The commercial model of implementation is diametrically opposed to a
high value outcome8 The average rate approach9 Process and as is obsession10Technobabble11Sloppy configuration12Confusion regarding valid customization13Lack of awareness of the benefits of strategic customization14Sloppy CONTRACTS with no accountability15Unconscious incompetence is EVERYWHERE
What is NOT an engineering approach
The engineering approach
A classic practical exampleNO Executive involvement
bull CEO of very big listed corporation in Johannesburg
bull With very big installation
bull Of very big brand ERP
bull Used in advertising
bull ldquoAt the executive level I would rate my systems at 110rdquo
bull ldquoAt the operational level I would rate my systems at 710rdquo
23
110
710BUT even that is being done
with smoke and mirrors
Top down (CEO led)versus bottom up design
24
Top Down ndash Strategy Focused
Bottom Up ndash Process Focused
25
There IS great opportunityERP can and should add value
26
Three alternative ERP value scenarios Unlocking the TRUE potential of ERP IBIS 100 1000 x the norm
1000
1 Current industry norm for process
based ldquoBest Practicerdquo
0
10X 001
100
0
2 Strategic precision
configuration with CEO Executive Custody
X 1
XXX 10
0
3 Strategic customizationWith CEO Custody
This is the ONLY valid scenario but it seldom
occurs
Relative strategic value measured in terms of business competitiveness growth and
profitability
27
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
28
What is strategyAn executive responsibility
Thrive
Strategy ndash Doing the right things
Tact
ics
ndash D
oin
g t
hin
gs
right
SurviveDie slowly
Die fast
Professor Malcolm McDonald
The time dependency of strategy
Professor Malcolm McDonald -- httpwwwmalcolm-mcdonaldcom
The time dependency of strategy
Professor Malcolm McDonald -- httpwwwmalcolm-mcdonaldcom
The time dependency of strategy
Professor Malcolm McDonald
The time dependency of strategyfrom good to GREAT
Analysis of the strategic environmentThe CEO owns this view
34
What IS Strategy
The Essence of WHY the Organization exists and HOW it THRIVES
1 Virtually NEVER changes
2 Intuited
3 Discovered NOT invented
35
Determining the ESSENCE of the business and how it thrives
1 Experienced strategic facilitator
2 Interview each executive one on one starting with the CEO
3 ldquoPlease will you tell me the essence of your business and how it thrives ndash what differentiates you from your competitionrdquo
4 Listen carefully
5 Take lots of notes
6 After completing the interviews synthesize ALL the views to arrive at a SINGLE SENTENCE amplified as necessary with further detail
7 If an executive differs with the CEO then unless the CEO has just arrived the CEOrsquos view must prevail particularly if the CEO is the founder or has been there for many years
8 New executives can be FAR off the mark
36
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
37
There IS great opportunityERP can and should add value
38
Key principles of executive level strategic decision making
1 85 of the basis of executive decision making is soft and tacit information
2 Skim ndash headlines
3 Maximum focus at the start of a report ndash the first page
4 8020 ndash Pareto ndash the Critical Key issues
5 Fast
6 Decisive
7 Right more than wrong
8 High value
9 Intuitive
Critical principle ndash constraint and opportunity -- cognitive span
Drill downA function of the content
41
Personnel Strategically Aligned Key Performance Indicators (KPIrsquos)
Tell me how you want me to behave and I will tell you HOW to measure me
Tell me how you are going to measure me and I will tell you how I am going to behave
Turn it around
Some key considerations with regard to decision making
43
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
Pulse Measurement
1 Concise diagnostic intervention ndash 1 to 10 days
2 Starts with executive interviews ndash understand the Essence of the Business and how it Thrives and Critical Concerns
3 Drill down to systems
4 +- 7 bullet point findings weighted
5 +- 7 recommended actions weighted
6 Findings frequently so obvious and so practical client can continue unaided
7 Strategic advisory and or project leadership to implement recommendations
Analysis of consolidated findings
httpswwwdropboxcomshvfkrz5p5yliwwaryV7SrD6kSh
46
30
1916
14
126 3
1 Mythology hype amp tradition -- 30
2 Lack of executive custody inap-propriate governance and policies -- 19
3 Lack of strategic architecture alignment etc -- 16
4 Lack of data engineering and poor configuration -- 14
5 Soft issues and change impacts -- 12
6 Lack of an engineering approach lack of precision etc -- 6
7 Technology issues -- 3
Factors causing ERP failure
47
22
20
19
17
14
6 2
1Executive custody strategic solution architect accountability -- 22
2 Effective change facilitation -- 20
3 Strategic architecture alignment etc -- 19
4 Data engineering and configuration -- 17
5 Engineering approach design against failure precision etc -- 14
6 Business integration training processes CBT --6
7 Technology -- 2
Factors for ERP reimplementation success
The value of technology is determined by the person using the technology
49
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
bull ldquoEnterprise Resource Planningrdquo = ERP Systemsbull or bull Integrated Business Information Systemsrdquo = IBIS
bull = ALL the information ldquorepositoriesrdquobull = databasesbull = tablesbull = listsbull = filing drawers folders
bull real world items that require description and managementbull
bull + the numerical computations workflow and other activities that are executed with the numbers (and text) stored in these repositories
bull ALL of which can be done by human beings -- including making a messbull
What is an ERP IBISA filing cabinet
51
IBIS ndash what every company REALLY has
Etc etc etc
Custom-ization
In-house custom development
Industry specific package
Brandname ERP = FRED
Spreadsheets
Data warehouse and BI
52
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
53
bull Stalled ERP implementation
bull CEO bought into ldquoERP as a strategic resourcerdquo based on my approach
bull Highly structured strategic Product Class taxonomy
bull Clever software to add products and maintain high quality master data
bull Projects module
bull Brand Management expense taxonomy
bull Clever software to create a project for every brand line with these expense heads
bull Direct integration with General Ledger
bull Comprehensive Brand Project Management and reporting to Principals in Europe
bull New account increased turnover significantly because could do something competitors could NOT do
Dramatic improvements in competitiveness growth and profitability are the ONLY valid arbiters of the success of an ERP implementation or a strategic plan
Case Study Strategic Engineered Precision Configuration WITH Clever Customization to support the ESSENCE
Data engineering
Data engineering principlesCase study
1 ERP Dramatic increase in management information
2 Reduction in head count
3 Dramatic reduction in audit time and cost
4 Unqualified balance sheet first time in 15 years
5 Presented with the client at a public conference
1 Strategic ndash Essence of the Business and how it thrives
2 Engineered ndash rigorous systematic comprehensively tried and tested methods standard conventions expert practitioners etc
3 Precision ndash exact carefully design meticulously fashioned
4 Taxonomies ndash hierarchical information classifications ordering and organizing business information
5 Coupled to precision code schemes which adhere to a number of very specific coding rules and conventions
6 A total solution
Founded on Strategic Engineered Precision Taxonomies (SEPTcopy)
57
Define Strategic Engineered Precision Configuration
bull Configuring the ERP so that it PRECISELY models the real worldbull The goal is that any executive manager supervisor or operator
can look at the configuration and say ldquoYES this IS my businessrdquobull Founded on master data taxonomies ndash structured semantic
contentbull Coupled to custom business specific attributesbull Supplemented by highly structured record level configurationbull Supporting small pieces of clever custom development that add
huge value and create huge strategic and operational opportunities
An ERP is a huge precision data processing factory
Feed it precision data
58
Conventional taxonomy example
ANIMALSELEPHANTSRHINOCEROSDOGSCATS
LIONSLEOPARDSDOMESTIC CATS
Persian CatsDomestic Short Hair Catsetc
59
Taxonomy defined
1 Logical word (semantic structure)
2 Precision vocabulary of preferred terms
3 Conveys understanding between humans with relevant knowledge and experience
4 Once linked to a precision code scheme the most important communication mechanism between computers and people
5 An art and a science
6 Once it is right it is OBVIOUS
Taxonomy example
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
61
Taxonomy relevance
1 Essential to effective operational and strategic use of business software
2 Nearly ALL validation lists (drop down lists) chart of accounts etc
3 Large body of expertise ndash Botany Zoology military filing Library Science Information Management etc
4 Unknown to many (most) IT professionals and business people
62
A computer isAn adding machine calculator
011+1=101+1+1=111+1+1+1=100
Called a ldquobitrdquo
8 bits make a byte
2 bytes make an ASCII character
A= ldquo41rdquo hex
0 1
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
Some harsh facts
1 Seventy percent of IT investments fail TOTALLY
2 19 out of 20 ERP implementations ldquodo not deliver what was promisedldquo
3 Seventy percent of BPR investments fail
4 Ninety percent of strategic plans fail
ldquoThe next corporate disaster waiting to happenrdquo
Business system failure can trash your business
Professor Richard Nolan ndash Harvard University
Unlocking the TRUE potential of ERPvs The Factors Driving Mediocrity
1 DO NOT know it is possible2 Inappropriate Governance3 Operational investment focus4 No concept of how to deliver strategic advantage5 Lack of a holistic Integrated Business Information Systems (IBIS) view 6 Unaware of the CRITICAL role of the strategic solution architect7 The commercial model of implementation is diametrically opposed to a
high value outcome8 The average rate approach9 Process and as is obsession10Technobabble11Sloppy configuration12Confusion regarding valid customization13Lack of awareness of the benefits of strategic customization14Sloppy CONTRACTS with no accountability15Unconscious incompetence is EVERYWHERE
What is NOT an engineering approach
The engineering approach
A classic practical exampleNO Executive involvement
bull CEO of very big listed corporation in Johannesburg
bull With very big installation
bull Of very big brand ERP
bull Used in advertising
bull ldquoAt the executive level I would rate my systems at 110rdquo
bull ldquoAt the operational level I would rate my systems at 710rdquo
23
110
710BUT even that is being done
with smoke and mirrors
Top down (CEO led)versus bottom up design
24
Top Down ndash Strategy Focused
Bottom Up ndash Process Focused
25
There IS great opportunityERP can and should add value
26
Three alternative ERP value scenarios Unlocking the TRUE potential of ERP IBIS 100 1000 x the norm
1000
1 Current industry norm for process
based ldquoBest Practicerdquo
0
10X 001
100
0
2 Strategic precision
configuration with CEO Executive Custody
X 1
XXX 10
0
3 Strategic customizationWith CEO Custody
This is the ONLY valid scenario but it seldom
occurs
Relative strategic value measured in terms of business competitiveness growth and
profitability
27
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
28
What is strategyAn executive responsibility
Thrive
Strategy ndash Doing the right things
Tact
ics
ndash D
oin
g t
hin
gs
right
SurviveDie slowly
Die fast
Professor Malcolm McDonald
The time dependency of strategy
Professor Malcolm McDonald -- httpwwwmalcolm-mcdonaldcom
The time dependency of strategy
Professor Malcolm McDonald -- httpwwwmalcolm-mcdonaldcom
The time dependency of strategy
Professor Malcolm McDonald
The time dependency of strategyfrom good to GREAT
Analysis of the strategic environmentThe CEO owns this view
34
What IS Strategy
The Essence of WHY the Organization exists and HOW it THRIVES
1 Virtually NEVER changes
2 Intuited
3 Discovered NOT invented
35
Determining the ESSENCE of the business and how it thrives
1 Experienced strategic facilitator
2 Interview each executive one on one starting with the CEO
3 ldquoPlease will you tell me the essence of your business and how it thrives ndash what differentiates you from your competitionrdquo
4 Listen carefully
5 Take lots of notes
6 After completing the interviews synthesize ALL the views to arrive at a SINGLE SENTENCE amplified as necessary with further detail
7 If an executive differs with the CEO then unless the CEO has just arrived the CEOrsquos view must prevail particularly if the CEO is the founder or has been there for many years
8 New executives can be FAR off the mark
36
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
37
There IS great opportunityERP can and should add value
38
Key principles of executive level strategic decision making
1 85 of the basis of executive decision making is soft and tacit information
2 Skim ndash headlines
3 Maximum focus at the start of a report ndash the first page
4 8020 ndash Pareto ndash the Critical Key issues
5 Fast
6 Decisive
7 Right more than wrong
8 High value
9 Intuitive
Critical principle ndash constraint and opportunity -- cognitive span
Drill downA function of the content
41
Personnel Strategically Aligned Key Performance Indicators (KPIrsquos)
Tell me how you want me to behave and I will tell you HOW to measure me
Tell me how you are going to measure me and I will tell you how I am going to behave
Turn it around
Some key considerations with regard to decision making
43
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
Pulse Measurement
1 Concise diagnostic intervention ndash 1 to 10 days
2 Starts with executive interviews ndash understand the Essence of the Business and how it Thrives and Critical Concerns
3 Drill down to systems
4 +- 7 bullet point findings weighted
5 +- 7 recommended actions weighted
6 Findings frequently so obvious and so practical client can continue unaided
7 Strategic advisory and or project leadership to implement recommendations
Analysis of consolidated findings
httpswwwdropboxcomshvfkrz5p5yliwwaryV7SrD6kSh
46
30
1916
14
126 3
1 Mythology hype amp tradition -- 30
2 Lack of executive custody inap-propriate governance and policies -- 19
3 Lack of strategic architecture alignment etc -- 16
4 Lack of data engineering and poor configuration -- 14
5 Soft issues and change impacts -- 12
6 Lack of an engineering approach lack of precision etc -- 6
7 Technology issues -- 3
Factors causing ERP failure
47
22
20
19
17
14
6 2
1Executive custody strategic solution architect accountability -- 22
2 Effective change facilitation -- 20
3 Strategic architecture alignment etc -- 19
4 Data engineering and configuration -- 17
5 Engineering approach design against failure precision etc -- 14
6 Business integration training processes CBT --6
7 Technology -- 2
Factors for ERP reimplementation success
The value of technology is determined by the person using the technology
49
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
bull ldquoEnterprise Resource Planningrdquo = ERP Systemsbull or bull Integrated Business Information Systemsrdquo = IBIS
bull = ALL the information ldquorepositoriesrdquobull = databasesbull = tablesbull = listsbull = filing drawers folders
bull real world items that require description and managementbull
bull + the numerical computations workflow and other activities that are executed with the numbers (and text) stored in these repositories
bull ALL of which can be done by human beings -- including making a messbull
What is an ERP IBISA filing cabinet
51
IBIS ndash what every company REALLY has
Etc etc etc
Custom-ization
In-house custom development
Industry specific package
Brandname ERP = FRED
Spreadsheets
Data warehouse and BI
52
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
53
bull Stalled ERP implementation
bull CEO bought into ldquoERP as a strategic resourcerdquo based on my approach
bull Highly structured strategic Product Class taxonomy
bull Clever software to add products and maintain high quality master data
bull Projects module
bull Brand Management expense taxonomy
bull Clever software to create a project for every brand line with these expense heads
bull Direct integration with General Ledger
bull Comprehensive Brand Project Management and reporting to Principals in Europe
bull New account increased turnover significantly because could do something competitors could NOT do
Dramatic improvements in competitiveness growth and profitability are the ONLY valid arbiters of the success of an ERP implementation or a strategic plan
Case Study Strategic Engineered Precision Configuration WITH Clever Customization to support the ESSENCE
Data engineering
Data engineering principlesCase study
1 ERP Dramatic increase in management information
2 Reduction in head count
3 Dramatic reduction in audit time and cost
4 Unqualified balance sheet first time in 15 years
5 Presented with the client at a public conference
1 Strategic ndash Essence of the Business and how it thrives
2 Engineered ndash rigorous systematic comprehensively tried and tested methods standard conventions expert practitioners etc
3 Precision ndash exact carefully design meticulously fashioned
4 Taxonomies ndash hierarchical information classifications ordering and organizing business information
5 Coupled to precision code schemes which adhere to a number of very specific coding rules and conventions
6 A total solution
Founded on Strategic Engineered Precision Taxonomies (SEPTcopy)
57
Define Strategic Engineered Precision Configuration
bull Configuring the ERP so that it PRECISELY models the real worldbull The goal is that any executive manager supervisor or operator
can look at the configuration and say ldquoYES this IS my businessrdquobull Founded on master data taxonomies ndash structured semantic
contentbull Coupled to custom business specific attributesbull Supplemented by highly structured record level configurationbull Supporting small pieces of clever custom development that add
huge value and create huge strategic and operational opportunities
An ERP is a huge precision data processing factory
Feed it precision data
58
Conventional taxonomy example
ANIMALSELEPHANTSRHINOCEROSDOGSCATS
LIONSLEOPARDSDOMESTIC CATS
Persian CatsDomestic Short Hair Catsetc
59
Taxonomy defined
1 Logical word (semantic structure)
2 Precision vocabulary of preferred terms
3 Conveys understanding between humans with relevant knowledge and experience
4 Once linked to a precision code scheme the most important communication mechanism between computers and people
5 An art and a science
6 Once it is right it is OBVIOUS
Taxonomy example
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
61
Taxonomy relevance
1 Essential to effective operational and strategic use of business software
2 Nearly ALL validation lists (drop down lists) chart of accounts etc
3 Large body of expertise ndash Botany Zoology military filing Library Science Information Management etc
4 Unknown to many (most) IT professionals and business people
62
A computer isAn adding machine calculator
011+1=101+1+1=111+1+1+1=100
Called a ldquobitrdquo
8 bits make a byte
2 bytes make an ASCII character
A= ldquo41rdquo hex
0 1
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
ldquoThe next corporate disaster waiting to happenrdquo
Business system failure can trash your business
Professor Richard Nolan ndash Harvard University
Unlocking the TRUE potential of ERPvs The Factors Driving Mediocrity
1 DO NOT know it is possible2 Inappropriate Governance3 Operational investment focus4 No concept of how to deliver strategic advantage5 Lack of a holistic Integrated Business Information Systems (IBIS) view 6 Unaware of the CRITICAL role of the strategic solution architect7 The commercial model of implementation is diametrically opposed to a
high value outcome8 The average rate approach9 Process and as is obsession10Technobabble11Sloppy configuration12Confusion regarding valid customization13Lack of awareness of the benefits of strategic customization14Sloppy CONTRACTS with no accountability15Unconscious incompetence is EVERYWHERE
What is NOT an engineering approach
The engineering approach
A classic practical exampleNO Executive involvement
bull CEO of very big listed corporation in Johannesburg
bull With very big installation
bull Of very big brand ERP
bull Used in advertising
bull ldquoAt the executive level I would rate my systems at 110rdquo
bull ldquoAt the operational level I would rate my systems at 710rdquo
23
110
710BUT even that is being done
with smoke and mirrors
Top down (CEO led)versus bottom up design
24
Top Down ndash Strategy Focused
Bottom Up ndash Process Focused
25
There IS great opportunityERP can and should add value
26
Three alternative ERP value scenarios Unlocking the TRUE potential of ERP IBIS 100 1000 x the norm
1000
1 Current industry norm for process
based ldquoBest Practicerdquo
0
10X 001
100
0
2 Strategic precision
configuration with CEO Executive Custody
X 1
XXX 10
0
3 Strategic customizationWith CEO Custody
This is the ONLY valid scenario but it seldom
occurs
Relative strategic value measured in terms of business competitiveness growth and
profitability
27
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
28
What is strategyAn executive responsibility
Thrive
Strategy ndash Doing the right things
Tact
ics
ndash D
oin
g t
hin
gs
right
SurviveDie slowly
Die fast
Professor Malcolm McDonald
The time dependency of strategy
Professor Malcolm McDonald -- httpwwwmalcolm-mcdonaldcom
The time dependency of strategy
Professor Malcolm McDonald -- httpwwwmalcolm-mcdonaldcom
The time dependency of strategy
Professor Malcolm McDonald
The time dependency of strategyfrom good to GREAT
Analysis of the strategic environmentThe CEO owns this view
34
What IS Strategy
The Essence of WHY the Organization exists and HOW it THRIVES
1 Virtually NEVER changes
2 Intuited
3 Discovered NOT invented
35
Determining the ESSENCE of the business and how it thrives
1 Experienced strategic facilitator
2 Interview each executive one on one starting with the CEO
3 ldquoPlease will you tell me the essence of your business and how it thrives ndash what differentiates you from your competitionrdquo
4 Listen carefully
5 Take lots of notes
6 After completing the interviews synthesize ALL the views to arrive at a SINGLE SENTENCE amplified as necessary with further detail
7 If an executive differs with the CEO then unless the CEO has just arrived the CEOrsquos view must prevail particularly if the CEO is the founder or has been there for many years
8 New executives can be FAR off the mark
36
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
37
There IS great opportunityERP can and should add value
38
Key principles of executive level strategic decision making
1 85 of the basis of executive decision making is soft and tacit information
2 Skim ndash headlines
3 Maximum focus at the start of a report ndash the first page
4 8020 ndash Pareto ndash the Critical Key issues
5 Fast
6 Decisive
7 Right more than wrong
8 High value
9 Intuitive
Critical principle ndash constraint and opportunity -- cognitive span
Drill downA function of the content
41
Personnel Strategically Aligned Key Performance Indicators (KPIrsquos)
Tell me how you want me to behave and I will tell you HOW to measure me
Tell me how you are going to measure me and I will tell you how I am going to behave
Turn it around
Some key considerations with regard to decision making
43
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
Pulse Measurement
1 Concise diagnostic intervention ndash 1 to 10 days
2 Starts with executive interviews ndash understand the Essence of the Business and how it Thrives and Critical Concerns
3 Drill down to systems
4 +- 7 bullet point findings weighted
5 +- 7 recommended actions weighted
6 Findings frequently so obvious and so practical client can continue unaided
7 Strategic advisory and or project leadership to implement recommendations
Analysis of consolidated findings
httpswwwdropboxcomshvfkrz5p5yliwwaryV7SrD6kSh
46
30
1916
14
126 3
1 Mythology hype amp tradition -- 30
2 Lack of executive custody inap-propriate governance and policies -- 19
3 Lack of strategic architecture alignment etc -- 16
4 Lack of data engineering and poor configuration -- 14
5 Soft issues and change impacts -- 12
6 Lack of an engineering approach lack of precision etc -- 6
7 Technology issues -- 3
Factors causing ERP failure
47
22
20
19
17
14
6 2
1Executive custody strategic solution architect accountability -- 22
2 Effective change facilitation -- 20
3 Strategic architecture alignment etc -- 19
4 Data engineering and configuration -- 17
5 Engineering approach design against failure precision etc -- 14
6 Business integration training processes CBT --6
7 Technology -- 2
Factors for ERP reimplementation success
The value of technology is determined by the person using the technology
49
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
bull ldquoEnterprise Resource Planningrdquo = ERP Systemsbull or bull Integrated Business Information Systemsrdquo = IBIS
bull = ALL the information ldquorepositoriesrdquobull = databasesbull = tablesbull = listsbull = filing drawers folders
bull real world items that require description and managementbull
bull + the numerical computations workflow and other activities that are executed with the numbers (and text) stored in these repositories
bull ALL of which can be done by human beings -- including making a messbull
What is an ERP IBISA filing cabinet
51
IBIS ndash what every company REALLY has
Etc etc etc
Custom-ization
In-house custom development
Industry specific package
Brandname ERP = FRED
Spreadsheets
Data warehouse and BI
52
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
53
bull Stalled ERP implementation
bull CEO bought into ldquoERP as a strategic resourcerdquo based on my approach
bull Highly structured strategic Product Class taxonomy
bull Clever software to add products and maintain high quality master data
bull Projects module
bull Brand Management expense taxonomy
bull Clever software to create a project for every brand line with these expense heads
bull Direct integration with General Ledger
bull Comprehensive Brand Project Management and reporting to Principals in Europe
bull New account increased turnover significantly because could do something competitors could NOT do
Dramatic improvements in competitiveness growth and profitability are the ONLY valid arbiters of the success of an ERP implementation or a strategic plan
Case Study Strategic Engineered Precision Configuration WITH Clever Customization to support the ESSENCE
Data engineering
Data engineering principlesCase study
1 ERP Dramatic increase in management information
2 Reduction in head count
3 Dramatic reduction in audit time and cost
4 Unqualified balance sheet first time in 15 years
5 Presented with the client at a public conference
1 Strategic ndash Essence of the Business and how it thrives
2 Engineered ndash rigorous systematic comprehensively tried and tested methods standard conventions expert practitioners etc
3 Precision ndash exact carefully design meticulously fashioned
4 Taxonomies ndash hierarchical information classifications ordering and organizing business information
5 Coupled to precision code schemes which adhere to a number of very specific coding rules and conventions
6 A total solution
Founded on Strategic Engineered Precision Taxonomies (SEPTcopy)
57
Define Strategic Engineered Precision Configuration
bull Configuring the ERP so that it PRECISELY models the real worldbull The goal is that any executive manager supervisor or operator
can look at the configuration and say ldquoYES this IS my businessrdquobull Founded on master data taxonomies ndash structured semantic
contentbull Coupled to custom business specific attributesbull Supplemented by highly structured record level configurationbull Supporting small pieces of clever custom development that add
huge value and create huge strategic and operational opportunities
An ERP is a huge precision data processing factory
Feed it precision data
58
Conventional taxonomy example
ANIMALSELEPHANTSRHINOCEROSDOGSCATS
LIONSLEOPARDSDOMESTIC CATS
Persian CatsDomestic Short Hair Catsetc
59
Taxonomy defined
1 Logical word (semantic structure)
2 Precision vocabulary of preferred terms
3 Conveys understanding between humans with relevant knowledge and experience
4 Once linked to a precision code scheme the most important communication mechanism between computers and people
5 An art and a science
6 Once it is right it is OBVIOUS
Taxonomy example
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
61
Taxonomy relevance
1 Essential to effective operational and strategic use of business software
2 Nearly ALL validation lists (drop down lists) chart of accounts etc
3 Large body of expertise ndash Botany Zoology military filing Library Science Information Management etc
4 Unknown to many (most) IT professionals and business people
62
A computer isAn adding machine calculator
011+1=101+1+1=111+1+1+1=100
Called a ldquobitrdquo
8 bits make a byte
2 bytes make an ASCII character
A= ldquo41rdquo hex
0 1
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
Unlocking the TRUE potential of ERPvs The Factors Driving Mediocrity
1 DO NOT know it is possible2 Inappropriate Governance3 Operational investment focus4 No concept of how to deliver strategic advantage5 Lack of a holistic Integrated Business Information Systems (IBIS) view 6 Unaware of the CRITICAL role of the strategic solution architect7 The commercial model of implementation is diametrically opposed to a
high value outcome8 The average rate approach9 Process and as is obsession10Technobabble11Sloppy configuration12Confusion regarding valid customization13Lack of awareness of the benefits of strategic customization14Sloppy CONTRACTS with no accountability15Unconscious incompetence is EVERYWHERE
What is NOT an engineering approach
The engineering approach
A classic practical exampleNO Executive involvement
bull CEO of very big listed corporation in Johannesburg
bull With very big installation
bull Of very big brand ERP
bull Used in advertising
bull ldquoAt the executive level I would rate my systems at 110rdquo
bull ldquoAt the operational level I would rate my systems at 710rdquo
23
110
710BUT even that is being done
with smoke and mirrors
Top down (CEO led)versus bottom up design
24
Top Down ndash Strategy Focused
Bottom Up ndash Process Focused
25
There IS great opportunityERP can and should add value
26
Three alternative ERP value scenarios Unlocking the TRUE potential of ERP IBIS 100 1000 x the norm
1000
1 Current industry norm for process
based ldquoBest Practicerdquo
0
10X 001
100
0
2 Strategic precision
configuration with CEO Executive Custody
X 1
XXX 10
0
3 Strategic customizationWith CEO Custody
This is the ONLY valid scenario but it seldom
occurs
Relative strategic value measured in terms of business competitiveness growth and
profitability
27
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
28
What is strategyAn executive responsibility
Thrive
Strategy ndash Doing the right things
Tact
ics
ndash D
oin
g t
hin
gs
right
SurviveDie slowly
Die fast
Professor Malcolm McDonald
The time dependency of strategy
Professor Malcolm McDonald -- httpwwwmalcolm-mcdonaldcom
The time dependency of strategy
Professor Malcolm McDonald -- httpwwwmalcolm-mcdonaldcom
The time dependency of strategy
Professor Malcolm McDonald
The time dependency of strategyfrom good to GREAT
Analysis of the strategic environmentThe CEO owns this view
34
What IS Strategy
The Essence of WHY the Organization exists and HOW it THRIVES
1 Virtually NEVER changes
2 Intuited
3 Discovered NOT invented
35
Determining the ESSENCE of the business and how it thrives
1 Experienced strategic facilitator
2 Interview each executive one on one starting with the CEO
3 ldquoPlease will you tell me the essence of your business and how it thrives ndash what differentiates you from your competitionrdquo
4 Listen carefully
5 Take lots of notes
6 After completing the interviews synthesize ALL the views to arrive at a SINGLE SENTENCE amplified as necessary with further detail
7 If an executive differs with the CEO then unless the CEO has just arrived the CEOrsquos view must prevail particularly if the CEO is the founder or has been there for many years
8 New executives can be FAR off the mark
36
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
37
There IS great opportunityERP can and should add value
38
Key principles of executive level strategic decision making
1 85 of the basis of executive decision making is soft and tacit information
2 Skim ndash headlines
3 Maximum focus at the start of a report ndash the first page
4 8020 ndash Pareto ndash the Critical Key issues
5 Fast
6 Decisive
7 Right more than wrong
8 High value
9 Intuitive
Critical principle ndash constraint and opportunity -- cognitive span
Drill downA function of the content
41
Personnel Strategically Aligned Key Performance Indicators (KPIrsquos)
Tell me how you want me to behave and I will tell you HOW to measure me
Tell me how you are going to measure me and I will tell you how I am going to behave
Turn it around
Some key considerations with regard to decision making
43
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
Pulse Measurement
1 Concise diagnostic intervention ndash 1 to 10 days
2 Starts with executive interviews ndash understand the Essence of the Business and how it Thrives and Critical Concerns
3 Drill down to systems
4 +- 7 bullet point findings weighted
5 +- 7 recommended actions weighted
6 Findings frequently so obvious and so practical client can continue unaided
7 Strategic advisory and or project leadership to implement recommendations
Analysis of consolidated findings
httpswwwdropboxcomshvfkrz5p5yliwwaryV7SrD6kSh
46
30
1916
14
126 3
1 Mythology hype amp tradition -- 30
2 Lack of executive custody inap-propriate governance and policies -- 19
3 Lack of strategic architecture alignment etc -- 16
4 Lack of data engineering and poor configuration -- 14
5 Soft issues and change impacts -- 12
6 Lack of an engineering approach lack of precision etc -- 6
7 Technology issues -- 3
Factors causing ERP failure
47
22
20
19
17
14
6 2
1Executive custody strategic solution architect accountability -- 22
2 Effective change facilitation -- 20
3 Strategic architecture alignment etc -- 19
4 Data engineering and configuration -- 17
5 Engineering approach design against failure precision etc -- 14
6 Business integration training processes CBT --6
7 Technology -- 2
Factors for ERP reimplementation success
The value of technology is determined by the person using the technology
49
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
bull ldquoEnterprise Resource Planningrdquo = ERP Systemsbull or bull Integrated Business Information Systemsrdquo = IBIS
bull = ALL the information ldquorepositoriesrdquobull = databasesbull = tablesbull = listsbull = filing drawers folders
bull real world items that require description and managementbull
bull + the numerical computations workflow and other activities that are executed with the numbers (and text) stored in these repositories
bull ALL of which can be done by human beings -- including making a messbull
What is an ERP IBISA filing cabinet
51
IBIS ndash what every company REALLY has
Etc etc etc
Custom-ization
In-house custom development
Industry specific package
Brandname ERP = FRED
Spreadsheets
Data warehouse and BI
52
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
53
bull Stalled ERP implementation
bull CEO bought into ldquoERP as a strategic resourcerdquo based on my approach
bull Highly structured strategic Product Class taxonomy
bull Clever software to add products and maintain high quality master data
bull Projects module
bull Brand Management expense taxonomy
bull Clever software to create a project for every brand line with these expense heads
bull Direct integration with General Ledger
bull Comprehensive Brand Project Management and reporting to Principals in Europe
bull New account increased turnover significantly because could do something competitors could NOT do
Dramatic improvements in competitiveness growth and profitability are the ONLY valid arbiters of the success of an ERP implementation or a strategic plan
Case Study Strategic Engineered Precision Configuration WITH Clever Customization to support the ESSENCE
Data engineering
Data engineering principlesCase study
1 ERP Dramatic increase in management information
2 Reduction in head count
3 Dramatic reduction in audit time and cost
4 Unqualified balance sheet first time in 15 years
5 Presented with the client at a public conference
1 Strategic ndash Essence of the Business and how it thrives
2 Engineered ndash rigorous systematic comprehensively tried and tested methods standard conventions expert practitioners etc
3 Precision ndash exact carefully design meticulously fashioned
4 Taxonomies ndash hierarchical information classifications ordering and organizing business information
5 Coupled to precision code schemes which adhere to a number of very specific coding rules and conventions
6 A total solution
Founded on Strategic Engineered Precision Taxonomies (SEPTcopy)
57
Define Strategic Engineered Precision Configuration
bull Configuring the ERP so that it PRECISELY models the real worldbull The goal is that any executive manager supervisor or operator
can look at the configuration and say ldquoYES this IS my businessrdquobull Founded on master data taxonomies ndash structured semantic
contentbull Coupled to custom business specific attributesbull Supplemented by highly structured record level configurationbull Supporting small pieces of clever custom development that add
huge value and create huge strategic and operational opportunities
An ERP is a huge precision data processing factory
Feed it precision data
58
Conventional taxonomy example
ANIMALSELEPHANTSRHINOCEROSDOGSCATS
LIONSLEOPARDSDOMESTIC CATS
Persian CatsDomestic Short Hair Catsetc
59
Taxonomy defined
1 Logical word (semantic structure)
2 Precision vocabulary of preferred terms
3 Conveys understanding between humans with relevant knowledge and experience
4 Once linked to a precision code scheme the most important communication mechanism between computers and people
5 An art and a science
6 Once it is right it is OBVIOUS
Taxonomy example
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
61
Taxonomy relevance
1 Essential to effective operational and strategic use of business software
2 Nearly ALL validation lists (drop down lists) chart of accounts etc
3 Large body of expertise ndash Botany Zoology military filing Library Science Information Management etc
4 Unknown to many (most) IT professionals and business people
62
A computer isAn adding machine calculator
011+1=101+1+1=111+1+1+1=100
Called a ldquobitrdquo
8 bits make a byte
2 bytes make an ASCII character
A= ldquo41rdquo hex
0 1
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
What is NOT an engineering approach
The engineering approach
A classic practical exampleNO Executive involvement
bull CEO of very big listed corporation in Johannesburg
bull With very big installation
bull Of very big brand ERP
bull Used in advertising
bull ldquoAt the executive level I would rate my systems at 110rdquo
bull ldquoAt the operational level I would rate my systems at 710rdquo
23
110
710BUT even that is being done
with smoke and mirrors
Top down (CEO led)versus bottom up design
24
Top Down ndash Strategy Focused
Bottom Up ndash Process Focused
25
There IS great opportunityERP can and should add value
26
Three alternative ERP value scenarios Unlocking the TRUE potential of ERP IBIS 100 1000 x the norm
1000
1 Current industry norm for process
based ldquoBest Practicerdquo
0
10X 001
100
0
2 Strategic precision
configuration with CEO Executive Custody
X 1
XXX 10
0
3 Strategic customizationWith CEO Custody
This is the ONLY valid scenario but it seldom
occurs
Relative strategic value measured in terms of business competitiveness growth and
profitability
27
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
28
What is strategyAn executive responsibility
Thrive
Strategy ndash Doing the right things
Tact
ics
ndash D
oin
g t
hin
gs
right
SurviveDie slowly
Die fast
Professor Malcolm McDonald
The time dependency of strategy
Professor Malcolm McDonald -- httpwwwmalcolm-mcdonaldcom
The time dependency of strategy
Professor Malcolm McDonald -- httpwwwmalcolm-mcdonaldcom
The time dependency of strategy
Professor Malcolm McDonald
The time dependency of strategyfrom good to GREAT
Analysis of the strategic environmentThe CEO owns this view
34
What IS Strategy
The Essence of WHY the Organization exists and HOW it THRIVES
1 Virtually NEVER changes
2 Intuited
3 Discovered NOT invented
35
Determining the ESSENCE of the business and how it thrives
1 Experienced strategic facilitator
2 Interview each executive one on one starting with the CEO
3 ldquoPlease will you tell me the essence of your business and how it thrives ndash what differentiates you from your competitionrdquo
4 Listen carefully
5 Take lots of notes
6 After completing the interviews synthesize ALL the views to arrive at a SINGLE SENTENCE amplified as necessary with further detail
7 If an executive differs with the CEO then unless the CEO has just arrived the CEOrsquos view must prevail particularly if the CEO is the founder or has been there for many years
8 New executives can be FAR off the mark
36
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
37
There IS great opportunityERP can and should add value
38
Key principles of executive level strategic decision making
1 85 of the basis of executive decision making is soft and tacit information
2 Skim ndash headlines
3 Maximum focus at the start of a report ndash the first page
4 8020 ndash Pareto ndash the Critical Key issues
5 Fast
6 Decisive
7 Right more than wrong
8 High value
9 Intuitive
Critical principle ndash constraint and opportunity -- cognitive span
Drill downA function of the content
41
Personnel Strategically Aligned Key Performance Indicators (KPIrsquos)
Tell me how you want me to behave and I will tell you HOW to measure me
Tell me how you are going to measure me and I will tell you how I am going to behave
Turn it around
Some key considerations with regard to decision making
43
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
Pulse Measurement
1 Concise diagnostic intervention ndash 1 to 10 days
2 Starts with executive interviews ndash understand the Essence of the Business and how it Thrives and Critical Concerns
3 Drill down to systems
4 +- 7 bullet point findings weighted
5 +- 7 recommended actions weighted
6 Findings frequently so obvious and so practical client can continue unaided
7 Strategic advisory and or project leadership to implement recommendations
Analysis of consolidated findings
httpswwwdropboxcomshvfkrz5p5yliwwaryV7SrD6kSh
46
30
1916
14
126 3
1 Mythology hype amp tradition -- 30
2 Lack of executive custody inap-propriate governance and policies -- 19
3 Lack of strategic architecture alignment etc -- 16
4 Lack of data engineering and poor configuration -- 14
5 Soft issues and change impacts -- 12
6 Lack of an engineering approach lack of precision etc -- 6
7 Technology issues -- 3
Factors causing ERP failure
47
22
20
19
17
14
6 2
1Executive custody strategic solution architect accountability -- 22
2 Effective change facilitation -- 20
3 Strategic architecture alignment etc -- 19
4 Data engineering and configuration -- 17
5 Engineering approach design against failure precision etc -- 14
6 Business integration training processes CBT --6
7 Technology -- 2
Factors for ERP reimplementation success
The value of technology is determined by the person using the technology
49
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
bull ldquoEnterprise Resource Planningrdquo = ERP Systemsbull or bull Integrated Business Information Systemsrdquo = IBIS
bull = ALL the information ldquorepositoriesrdquobull = databasesbull = tablesbull = listsbull = filing drawers folders
bull real world items that require description and managementbull
bull + the numerical computations workflow and other activities that are executed with the numbers (and text) stored in these repositories
bull ALL of which can be done by human beings -- including making a messbull
What is an ERP IBISA filing cabinet
51
IBIS ndash what every company REALLY has
Etc etc etc
Custom-ization
In-house custom development
Industry specific package
Brandname ERP = FRED
Spreadsheets
Data warehouse and BI
52
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
53
bull Stalled ERP implementation
bull CEO bought into ldquoERP as a strategic resourcerdquo based on my approach
bull Highly structured strategic Product Class taxonomy
bull Clever software to add products and maintain high quality master data
bull Projects module
bull Brand Management expense taxonomy
bull Clever software to create a project for every brand line with these expense heads
bull Direct integration with General Ledger
bull Comprehensive Brand Project Management and reporting to Principals in Europe
bull New account increased turnover significantly because could do something competitors could NOT do
Dramatic improvements in competitiveness growth and profitability are the ONLY valid arbiters of the success of an ERP implementation or a strategic plan
Case Study Strategic Engineered Precision Configuration WITH Clever Customization to support the ESSENCE
Data engineering
Data engineering principlesCase study
1 ERP Dramatic increase in management information
2 Reduction in head count
3 Dramatic reduction in audit time and cost
4 Unqualified balance sheet first time in 15 years
5 Presented with the client at a public conference
1 Strategic ndash Essence of the Business and how it thrives
2 Engineered ndash rigorous systematic comprehensively tried and tested methods standard conventions expert practitioners etc
3 Precision ndash exact carefully design meticulously fashioned
4 Taxonomies ndash hierarchical information classifications ordering and organizing business information
5 Coupled to precision code schemes which adhere to a number of very specific coding rules and conventions
6 A total solution
Founded on Strategic Engineered Precision Taxonomies (SEPTcopy)
57
Define Strategic Engineered Precision Configuration
bull Configuring the ERP so that it PRECISELY models the real worldbull The goal is that any executive manager supervisor or operator
can look at the configuration and say ldquoYES this IS my businessrdquobull Founded on master data taxonomies ndash structured semantic
contentbull Coupled to custom business specific attributesbull Supplemented by highly structured record level configurationbull Supporting small pieces of clever custom development that add
huge value and create huge strategic and operational opportunities
An ERP is a huge precision data processing factory
Feed it precision data
58
Conventional taxonomy example
ANIMALSELEPHANTSRHINOCEROSDOGSCATS
LIONSLEOPARDSDOMESTIC CATS
Persian CatsDomestic Short Hair Catsetc
59
Taxonomy defined
1 Logical word (semantic structure)
2 Precision vocabulary of preferred terms
3 Conveys understanding between humans with relevant knowledge and experience
4 Once linked to a precision code scheme the most important communication mechanism between computers and people
5 An art and a science
6 Once it is right it is OBVIOUS
Taxonomy example
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
61
Taxonomy relevance
1 Essential to effective operational and strategic use of business software
2 Nearly ALL validation lists (drop down lists) chart of accounts etc
3 Large body of expertise ndash Botany Zoology military filing Library Science Information Management etc
4 Unknown to many (most) IT professionals and business people
62
A computer isAn adding machine calculator
011+1=101+1+1=111+1+1+1=100
Called a ldquobitrdquo
8 bits make a byte
2 bytes make an ASCII character
A= ldquo41rdquo hex
0 1
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
The engineering approach
A classic practical exampleNO Executive involvement
bull CEO of very big listed corporation in Johannesburg
bull With very big installation
bull Of very big brand ERP
bull Used in advertising
bull ldquoAt the executive level I would rate my systems at 110rdquo
bull ldquoAt the operational level I would rate my systems at 710rdquo
23
110
710BUT even that is being done
with smoke and mirrors
Top down (CEO led)versus bottom up design
24
Top Down ndash Strategy Focused
Bottom Up ndash Process Focused
25
There IS great opportunityERP can and should add value
26
Three alternative ERP value scenarios Unlocking the TRUE potential of ERP IBIS 100 1000 x the norm
1000
1 Current industry norm for process
based ldquoBest Practicerdquo
0
10X 001
100
0
2 Strategic precision
configuration with CEO Executive Custody
X 1
XXX 10
0
3 Strategic customizationWith CEO Custody
This is the ONLY valid scenario but it seldom
occurs
Relative strategic value measured in terms of business competitiveness growth and
profitability
27
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
28
What is strategyAn executive responsibility
Thrive
Strategy ndash Doing the right things
Tact
ics
ndash D
oin
g t
hin
gs
right
SurviveDie slowly
Die fast
Professor Malcolm McDonald
The time dependency of strategy
Professor Malcolm McDonald -- httpwwwmalcolm-mcdonaldcom
The time dependency of strategy
Professor Malcolm McDonald -- httpwwwmalcolm-mcdonaldcom
The time dependency of strategy
Professor Malcolm McDonald
The time dependency of strategyfrom good to GREAT
Analysis of the strategic environmentThe CEO owns this view
34
What IS Strategy
The Essence of WHY the Organization exists and HOW it THRIVES
1 Virtually NEVER changes
2 Intuited
3 Discovered NOT invented
35
Determining the ESSENCE of the business and how it thrives
1 Experienced strategic facilitator
2 Interview each executive one on one starting with the CEO
3 ldquoPlease will you tell me the essence of your business and how it thrives ndash what differentiates you from your competitionrdquo
4 Listen carefully
5 Take lots of notes
6 After completing the interviews synthesize ALL the views to arrive at a SINGLE SENTENCE amplified as necessary with further detail
7 If an executive differs with the CEO then unless the CEO has just arrived the CEOrsquos view must prevail particularly if the CEO is the founder or has been there for many years
8 New executives can be FAR off the mark
36
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
37
There IS great opportunityERP can and should add value
38
Key principles of executive level strategic decision making
1 85 of the basis of executive decision making is soft and tacit information
2 Skim ndash headlines
3 Maximum focus at the start of a report ndash the first page
4 8020 ndash Pareto ndash the Critical Key issues
5 Fast
6 Decisive
7 Right more than wrong
8 High value
9 Intuitive
Critical principle ndash constraint and opportunity -- cognitive span
Drill downA function of the content
41
Personnel Strategically Aligned Key Performance Indicators (KPIrsquos)
Tell me how you want me to behave and I will tell you HOW to measure me
Tell me how you are going to measure me and I will tell you how I am going to behave
Turn it around
Some key considerations with regard to decision making
43
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
Pulse Measurement
1 Concise diagnostic intervention ndash 1 to 10 days
2 Starts with executive interviews ndash understand the Essence of the Business and how it Thrives and Critical Concerns
3 Drill down to systems
4 +- 7 bullet point findings weighted
5 +- 7 recommended actions weighted
6 Findings frequently so obvious and so practical client can continue unaided
7 Strategic advisory and or project leadership to implement recommendations
Analysis of consolidated findings
httpswwwdropboxcomshvfkrz5p5yliwwaryV7SrD6kSh
46
30
1916
14
126 3
1 Mythology hype amp tradition -- 30
2 Lack of executive custody inap-propriate governance and policies -- 19
3 Lack of strategic architecture alignment etc -- 16
4 Lack of data engineering and poor configuration -- 14
5 Soft issues and change impacts -- 12
6 Lack of an engineering approach lack of precision etc -- 6
7 Technology issues -- 3
Factors causing ERP failure
47
22
20
19
17
14
6 2
1Executive custody strategic solution architect accountability -- 22
2 Effective change facilitation -- 20
3 Strategic architecture alignment etc -- 19
4 Data engineering and configuration -- 17
5 Engineering approach design against failure precision etc -- 14
6 Business integration training processes CBT --6
7 Technology -- 2
Factors for ERP reimplementation success
The value of technology is determined by the person using the technology
49
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
bull ldquoEnterprise Resource Planningrdquo = ERP Systemsbull or bull Integrated Business Information Systemsrdquo = IBIS
bull = ALL the information ldquorepositoriesrdquobull = databasesbull = tablesbull = listsbull = filing drawers folders
bull real world items that require description and managementbull
bull + the numerical computations workflow and other activities that are executed with the numbers (and text) stored in these repositories
bull ALL of which can be done by human beings -- including making a messbull
What is an ERP IBISA filing cabinet
51
IBIS ndash what every company REALLY has
Etc etc etc
Custom-ization
In-house custom development
Industry specific package
Brandname ERP = FRED
Spreadsheets
Data warehouse and BI
52
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
53
bull Stalled ERP implementation
bull CEO bought into ldquoERP as a strategic resourcerdquo based on my approach
bull Highly structured strategic Product Class taxonomy
bull Clever software to add products and maintain high quality master data
bull Projects module
bull Brand Management expense taxonomy
bull Clever software to create a project for every brand line with these expense heads
bull Direct integration with General Ledger
bull Comprehensive Brand Project Management and reporting to Principals in Europe
bull New account increased turnover significantly because could do something competitors could NOT do
Dramatic improvements in competitiveness growth and profitability are the ONLY valid arbiters of the success of an ERP implementation or a strategic plan
Case Study Strategic Engineered Precision Configuration WITH Clever Customization to support the ESSENCE
Data engineering
Data engineering principlesCase study
1 ERP Dramatic increase in management information
2 Reduction in head count
3 Dramatic reduction in audit time and cost
4 Unqualified balance sheet first time in 15 years
5 Presented with the client at a public conference
1 Strategic ndash Essence of the Business and how it thrives
2 Engineered ndash rigorous systematic comprehensively tried and tested methods standard conventions expert practitioners etc
3 Precision ndash exact carefully design meticulously fashioned
4 Taxonomies ndash hierarchical information classifications ordering and organizing business information
5 Coupled to precision code schemes which adhere to a number of very specific coding rules and conventions
6 A total solution
Founded on Strategic Engineered Precision Taxonomies (SEPTcopy)
57
Define Strategic Engineered Precision Configuration
bull Configuring the ERP so that it PRECISELY models the real worldbull The goal is that any executive manager supervisor or operator
can look at the configuration and say ldquoYES this IS my businessrdquobull Founded on master data taxonomies ndash structured semantic
contentbull Coupled to custom business specific attributesbull Supplemented by highly structured record level configurationbull Supporting small pieces of clever custom development that add
huge value and create huge strategic and operational opportunities
An ERP is a huge precision data processing factory
Feed it precision data
58
Conventional taxonomy example
ANIMALSELEPHANTSRHINOCEROSDOGSCATS
LIONSLEOPARDSDOMESTIC CATS
Persian CatsDomestic Short Hair Catsetc
59
Taxonomy defined
1 Logical word (semantic structure)
2 Precision vocabulary of preferred terms
3 Conveys understanding between humans with relevant knowledge and experience
4 Once linked to a precision code scheme the most important communication mechanism between computers and people
5 An art and a science
6 Once it is right it is OBVIOUS
Taxonomy example
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
61
Taxonomy relevance
1 Essential to effective operational and strategic use of business software
2 Nearly ALL validation lists (drop down lists) chart of accounts etc
3 Large body of expertise ndash Botany Zoology military filing Library Science Information Management etc
4 Unknown to many (most) IT professionals and business people
62
A computer isAn adding machine calculator
011+1=101+1+1=111+1+1+1=100
Called a ldquobitrdquo
8 bits make a byte
2 bytes make an ASCII character
A= ldquo41rdquo hex
0 1
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
A classic practical exampleNO Executive involvement
bull CEO of very big listed corporation in Johannesburg
bull With very big installation
bull Of very big brand ERP
bull Used in advertising
bull ldquoAt the executive level I would rate my systems at 110rdquo
bull ldquoAt the operational level I would rate my systems at 710rdquo
23
110
710BUT even that is being done
with smoke and mirrors
Top down (CEO led)versus bottom up design
24
Top Down ndash Strategy Focused
Bottom Up ndash Process Focused
25
There IS great opportunityERP can and should add value
26
Three alternative ERP value scenarios Unlocking the TRUE potential of ERP IBIS 100 1000 x the norm
1000
1 Current industry norm for process
based ldquoBest Practicerdquo
0
10X 001
100
0
2 Strategic precision
configuration with CEO Executive Custody
X 1
XXX 10
0
3 Strategic customizationWith CEO Custody
This is the ONLY valid scenario but it seldom
occurs
Relative strategic value measured in terms of business competitiveness growth and
profitability
27
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
28
What is strategyAn executive responsibility
Thrive
Strategy ndash Doing the right things
Tact
ics
ndash D
oin
g t
hin
gs
right
SurviveDie slowly
Die fast
Professor Malcolm McDonald
The time dependency of strategy
Professor Malcolm McDonald -- httpwwwmalcolm-mcdonaldcom
The time dependency of strategy
Professor Malcolm McDonald -- httpwwwmalcolm-mcdonaldcom
The time dependency of strategy
Professor Malcolm McDonald
The time dependency of strategyfrom good to GREAT
Analysis of the strategic environmentThe CEO owns this view
34
What IS Strategy
The Essence of WHY the Organization exists and HOW it THRIVES
1 Virtually NEVER changes
2 Intuited
3 Discovered NOT invented
35
Determining the ESSENCE of the business and how it thrives
1 Experienced strategic facilitator
2 Interview each executive one on one starting with the CEO
3 ldquoPlease will you tell me the essence of your business and how it thrives ndash what differentiates you from your competitionrdquo
4 Listen carefully
5 Take lots of notes
6 After completing the interviews synthesize ALL the views to arrive at a SINGLE SENTENCE amplified as necessary with further detail
7 If an executive differs with the CEO then unless the CEO has just arrived the CEOrsquos view must prevail particularly if the CEO is the founder or has been there for many years
8 New executives can be FAR off the mark
36
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
37
There IS great opportunityERP can and should add value
38
Key principles of executive level strategic decision making
1 85 of the basis of executive decision making is soft and tacit information
2 Skim ndash headlines
3 Maximum focus at the start of a report ndash the first page
4 8020 ndash Pareto ndash the Critical Key issues
5 Fast
6 Decisive
7 Right more than wrong
8 High value
9 Intuitive
Critical principle ndash constraint and opportunity -- cognitive span
Drill downA function of the content
41
Personnel Strategically Aligned Key Performance Indicators (KPIrsquos)
Tell me how you want me to behave and I will tell you HOW to measure me
Tell me how you are going to measure me and I will tell you how I am going to behave
Turn it around
Some key considerations with regard to decision making
43
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
Pulse Measurement
1 Concise diagnostic intervention ndash 1 to 10 days
2 Starts with executive interviews ndash understand the Essence of the Business and how it Thrives and Critical Concerns
3 Drill down to systems
4 +- 7 bullet point findings weighted
5 +- 7 recommended actions weighted
6 Findings frequently so obvious and so practical client can continue unaided
7 Strategic advisory and or project leadership to implement recommendations
Analysis of consolidated findings
httpswwwdropboxcomshvfkrz5p5yliwwaryV7SrD6kSh
46
30
1916
14
126 3
1 Mythology hype amp tradition -- 30
2 Lack of executive custody inap-propriate governance and policies -- 19
3 Lack of strategic architecture alignment etc -- 16
4 Lack of data engineering and poor configuration -- 14
5 Soft issues and change impacts -- 12
6 Lack of an engineering approach lack of precision etc -- 6
7 Technology issues -- 3
Factors causing ERP failure
47
22
20
19
17
14
6 2
1Executive custody strategic solution architect accountability -- 22
2 Effective change facilitation -- 20
3 Strategic architecture alignment etc -- 19
4 Data engineering and configuration -- 17
5 Engineering approach design against failure precision etc -- 14
6 Business integration training processes CBT --6
7 Technology -- 2
Factors for ERP reimplementation success
The value of technology is determined by the person using the technology
49
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
bull ldquoEnterprise Resource Planningrdquo = ERP Systemsbull or bull Integrated Business Information Systemsrdquo = IBIS
bull = ALL the information ldquorepositoriesrdquobull = databasesbull = tablesbull = listsbull = filing drawers folders
bull real world items that require description and managementbull
bull + the numerical computations workflow and other activities that are executed with the numbers (and text) stored in these repositories
bull ALL of which can be done by human beings -- including making a messbull
What is an ERP IBISA filing cabinet
51
IBIS ndash what every company REALLY has
Etc etc etc
Custom-ization
In-house custom development
Industry specific package
Brandname ERP = FRED
Spreadsheets
Data warehouse and BI
52
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
53
bull Stalled ERP implementation
bull CEO bought into ldquoERP as a strategic resourcerdquo based on my approach
bull Highly structured strategic Product Class taxonomy
bull Clever software to add products and maintain high quality master data
bull Projects module
bull Brand Management expense taxonomy
bull Clever software to create a project for every brand line with these expense heads
bull Direct integration with General Ledger
bull Comprehensive Brand Project Management and reporting to Principals in Europe
bull New account increased turnover significantly because could do something competitors could NOT do
Dramatic improvements in competitiveness growth and profitability are the ONLY valid arbiters of the success of an ERP implementation or a strategic plan
Case Study Strategic Engineered Precision Configuration WITH Clever Customization to support the ESSENCE
Data engineering
Data engineering principlesCase study
1 ERP Dramatic increase in management information
2 Reduction in head count
3 Dramatic reduction in audit time and cost
4 Unqualified balance sheet first time in 15 years
5 Presented with the client at a public conference
1 Strategic ndash Essence of the Business and how it thrives
2 Engineered ndash rigorous systematic comprehensively tried and tested methods standard conventions expert practitioners etc
3 Precision ndash exact carefully design meticulously fashioned
4 Taxonomies ndash hierarchical information classifications ordering and organizing business information
5 Coupled to precision code schemes which adhere to a number of very specific coding rules and conventions
6 A total solution
Founded on Strategic Engineered Precision Taxonomies (SEPTcopy)
57
Define Strategic Engineered Precision Configuration
bull Configuring the ERP so that it PRECISELY models the real worldbull The goal is that any executive manager supervisor or operator
can look at the configuration and say ldquoYES this IS my businessrdquobull Founded on master data taxonomies ndash structured semantic
contentbull Coupled to custom business specific attributesbull Supplemented by highly structured record level configurationbull Supporting small pieces of clever custom development that add
huge value and create huge strategic and operational opportunities
An ERP is a huge precision data processing factory
Feed it precision data
58
Conventional taxonomy example
ANIMALSELEPHANTSRHINOCEROSDOGSCATS
LIONSLEOPARDSDOMESTIC CATS
Persian CatsDomestic Short Hair Catsetc
59
Taxonomy defined
1 Logical word (semantic structure)
2 Precision vocabulary of preferred terms
3 Conveys understanding between humans with relevant knowledge and experience
4 Once linked to a precision code scheme the most important communication mechanism between computers and people
5 An art and a science
6 Once it is right it is OBVIOUS
Taxonomy example
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
61
Taxonomy relevance
1 Essential to effective operational and strategic use of business software
2 Nearly ALL validation lists (drop down lists) chart of accounts etc
3 Large body of expertise ndash Botany Zoology military filing Library Science Information Management etc
4 Unknown to many (most) IT professionals and business people
62
A computer isAn adding machine calculator
011+1=101+1+1=111+1+1+1=100
Called a ldquobitrdquo
8 bits make a byte
2 bytes make an ASCII character
A= ldquo41rdquo hex
0 1
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
Top down (CEO led)versus bottom up design
24
Top Down ndash Strategy Focused
Bottom Up ndash Process Focused
25
There IS great opportunityERP can and should add value
26
Three alternative ERP value scenarios Unlocking the TRUE potential of ERP IBIS 100 1000 x the norm
1000
1 Current industry norm for process
based ldquoBest Practicerdquo
0
10X 001
100
0
2 Strategic precision
configuration with CEO Executive Custody
X 1
XXX 10
0
3 Strategic customizationWith CEO Custody
This is the ONLY valid scenario but it seldom
occurs
Relative strategic value measured in terms of business competitiveness growth and
profitability
27
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
28
What is strategyAn executive responsibility
Thrive
Strategy ndash Doing the right things
Tact
ics
ndash D
oin
g t
hin
gs
right
SurviveDie slowly
Die fast
Professor Malcolm McDonald
The time dependency of strategy
Professor Malcolm McDonald -- httpwwwmalcolm-mcdonaldcom
The time dependency of strategy
Professor Malcolm McDonald -- httpwwwmalcolm-mcdonaldcom
The time dependency of strategy
Professor Malcolm McDonald
The time dependency of strategyfrom good to GREAT
Analysis of the strategic environmentThe CEO owns this view
34
What IS Strategy
The Essence of WHY the Organization exists and HOW it THRIVES
1 Virtually NEVER changes
2 Intuited
3 Discovered NOT invented
35
Determining the ESSENCE of the business and how it thrives
1 Experienced strategic facilitator
2 Interview each executive one on one starting with the CEO
3 ldquoPlease will you tell me the essence of your business and how it thrives ndash what differentiates you from your competitionrdquo
4 Listen carefully
5 Take lots of notes
6 After completing the interviews synthesize ALL the views to arrive at a SINGLE SENTENCE amplified as necessary with further detail
7 If an executive differs with the CEO then unless the CEO has just arrived the CEOrsquos view must prevail particularly if the CEO is the founder or has been there for many years
8 New executives can be FAR off the mark
36
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
37
There IS great opportunityERP can and should add value
38
Key principles of executive level strategic decision making
1 85 of the basis of executive decision making is soft and tacit information
2 Skim ndash headlines
3 Maximum focus at the start of a report ndash the first page
4 8020 ndash Pareto ndash the Critical Key issues
5 Fast
6 Decisive
7 Right more than wrong
8 High value
9 Intuitive
Critical principle ndash constraint and opportunity -- cognitive span
Drill downA function of the content
41
Personnel Strategically Aligned Key Performance Indicators (KPIrsquos)
Tell me how you want me to behave and I will tell you HOW to measure me
Tell me how you are going to measure me and I will tell you how I am going to behave
Turn it around
Some key considerations with regard to decision making
43
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
Pulse Measurement
1 Concise diagnostic intervention ndash 1 to 10 days
2 Starts with executive interviews ndash understand the Essence of the Business and how it Thrives and Critical Concerns
3 Drill down to systems
4 +- 7 bullet point findings weighted
5 +- 7 recommended actions weighted
6 Findings frequently so obvious and so practical client can continue unaided
7 Strategic advisory and or project leadership to implement recommendations
Analysis of consolidated findings
httpswwwdropboxcomshvfkrz5p5yliwwaryV7SrD6kSh
46
30
1916
14
126 3
1 Mythology hype amp tradition -- 30
2 Lack of executive custody inap-propriate governance and policies -- 19
3 Lack of strategic architecture alignment etc -- 16
4 Lack of data engineering and poor configuration -- 14
5 Soft issues and change impacts -- 12
6 Lack of an engineering approach lack of precision etc -- 6
7 Technology issues -- 3
Factors causing ERP failure
47
22
20
19
17
14
6 2
1Executive custody strategic solution architect accountability -- 22
2 Effective change facilitation -- 20
3 Strategic architecture alignment etc -- 19
4 Data engineering and configuration -- 17
5 Engineering approach design against failure precision etc -- 14
6 Business integration training processes CBT --6
7 Technology -- 2
Factors for ERP reimplementation success
The value of technology is determined by the person using the technology
49
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
bull ldquoEnterprise Resource Planningrdquo = ERP Systemsbull or bull Integrated Business Information Systemsrdquo = IBIS
bull = ALL the information ldquorepositoriesrdquobull = databasesbull = tablesbull = listsbull = filing drawers folders
bull real world items that require description and managementbull
bull + the numerical computations workflow and other activities that are executed with the numbers (and text) stored in these repositories
bull ALL of which can be done by human beings -- including making a messbull
What is an ERP IBISA filing cabinet
51
IBIS ndash what every company REALLY has
Etc etc etc
Custom-ization
In-house custom development
Industry specific package
Brandname ERP = FRED
Spreadsheets
Data warehouse and BI
52
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
53
bull Stalled ERP implementation
bull CEO bought into ldquoERP as a strategic resourcerdquo based on my approach
bull Highly structured strategic Product Class taxonomy
bull Clever software to add products and maintain high quality master data
bull Projects module
bull Brand Management expense taxonomy
bull Clever software to create a project for every brand line with these expense heads
bull Direct integration with General Ledger
bull Comprehensive Brand Project Management and reporting to Principals in Europe
bull New account increased turnover significantly because could do something competitors could NOT do
Dramatic improvements in competitiveness growth and profitability are the ONLY valid arbiters of the success of an ERP implementation or a strategic plan
Case Study Strategic Engineered Precision Configuration WITH Clever Customization to support the ESSENCE
Data engineering
Data engineering principlesCase study
1 ERP Dramatic increase in management information
2 Reduction in head count
3 Dramatic reduction in audit time and cost
4 Unqualified balance sheet first time in 15 years
5 Presented with the client at a public conference
1 Strategic ndash Essence of the Business and how it thrives
2 Engineered ndash rigorous systematic comprehensively tried and tested methods standard conventions expert practitioners etc
3 Precision ndash exact carefully design meticulously fashioned
4 Taxonomies ndash hierarchical information classifications ordering and organizing business information
5 Coupled to precision code schemes which adhere to a number of very specific coding rules and conventions
6 A total solution
Founded on Strategic Engineered Precision Taxonomies (SEPTcopy)
57
Define Strategic Engineered Precision Configuration
bull Configuring the ERP so that it PRECISELY models the real worldbull The goal is that any executive manager supervisor or operator
can look at the configuration and say ldquoYES this IS my businessrdquobull Founded on master data taxonomies ndash structured semantic
contentbull Coupled to custom business specific attributesbull Supplemented by highly structured record level configurationbull Supporting small pieces of clever custom development that add
huge value and create huge strategic and operational opportunities
An ERP is a huge precision data processing factory
Feed it precision data
58
Conventional taxonomy example
ANIMALSELEPHANTSRHINOCEROSDOGSCATS
LIONSLEOPARDSDOMESTIC CATS
Persian CatsDomestic Short Hair Catsetc
59
Taxonomy defined
1 Logical word (semantic structure)
2 Precision vocabulary of preferred terms
3 Conveys understanding between humans with relevant knowledge and experience
4 Once linked to a precision code scheme the most important communication mechanism between computers and people
5 An art and a science
6 Once it is right it is OBVIOUS
Taxonomy example
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
61
Taxonomy relevance
1 Essential to effective operational and strategic use of business software
2 Nearly ALL validation lists (drop down lists) chart of accounts etc
3 Large body of expertise ndash Botany Zoology military filing Library Science Information Management etc
4 Unknown to many (most) IT professionals and business people
62
A computer isAn adding machine calculator
011+1=101+1+1=111+1+1+1=100
Called a ldquobitrdquo
8 bits make a byte
2 bytes make an ASCII character
A= ldquo41rdquo hex
0 1
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
25
There IS great opportunityERP can and should add value
26
Three alternative ERP value scenarios Unlocking the TRUE potential of ERP IBIS 100 1000 x the norm
1000
1 Current industry norm for process
based ldquoBest Practicerdquo
0
10X 001
100
0
2 Strategic precision
configuration with CEO Executive Custody
X 1
XXX 10
0
3 Strategic customizationWith CEO Custody
This is the ONLY valid scenario but it seldom
occurs
Relative strategic value measured in terms of business competitiveness growth and
profitability
27
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
28
What is strategyAn executive responsibility
Thrive
Strategy ndash Doing the right things
Tact
ics
ndash D
oin
g t
hin
gs
right
SurviveDie slowly
Die fast
Professor Malcolm McDonald
The time dependency of strategy
Professor Malcolm McDonald -- httpwwwmalcolm-mcdonaldcom
The time dependency of strategy
Professor Malcolm McDonald -- httpwwwmalcolm-mcdonaldcom
The time dependency of strategy
Professor Malcolm McDonald
The time dependency of strategyfrom good to GREAT
Analysis of the strategic environmentThe CEO owns this view
34
What IS Strategy
The Essence of WHY the Organization exists and HOW it THRIVES
1 Virtually NEVER changes
2 Intuited
3 Discovered NOT invented
35
Determining the ESSENCE of the business and how it thrives
1 Experienced strategic facilitator
2 Interview each executive one on one starting with the CEO
3 ldquoPlease will you tell me the essence of your business and how it thrives ndash what differentiates you from your competitionrdquo
4 Listen carefully
5 Take lots of notes
6 After completing the interviews synthesize ALL the views to arrive at a SINGLE SENTENCE amplified as necessary with further detail
7 If an executive differs with the CEO then unless the CEO has just arrived the CEOrsquos view must prevail particularly if the CEO is the founder or has been there for many years
8 New executives can be FAR off the mark
36
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
37
There IS great opportunityERP can and should add value
38
Key principles of executive level strategic decision making
1 85 of the basis of executive decision making is soft and tacit information
2 Skim ndash headlines
3 Maximum focus at the start of a report ndash the first page
4 8020 ndash Pareto ndash the Critical Key issues
5 Fast
6 Decisive
7 Right more than wrong
8 High value
9 Intuitive
Critical principle ndash constraint and opportunity -- cognitive span
Drill downA function of the content
41
Personnel Strategically Aligned Key Performance Indicators (KPIrsquos)
Tell me how you want me to behave and I will tell you HOW to measure me
Tell me how you are going to measure me and I will tell you how I am going to behave
Turn it around
Some key considerations with regard to decision making
43
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
Pulse Measurement
1 Concise diagnostic intervention ndash 1 to 10 days
2 Starts with executive interviews ndash understand the Essence of the Business and how it Thrives and Critical Concerns
3 Drill down to systems
4 +- 7 bullet point findings weighted
5 +- 7 recommended actions weighted
6 Findings frequently so obvious and so practical client can continue unaided
7 Strategic advisory and or project leadership to implement recommendations
Analysis of consolidated findings
httpswwwdropboxcomshvfkrz5p5yliwwaryV7SrD6kSh
46
30
1916
14
126 3
1 Mythology hype amp tradition -- 30
2 Lack of executive custody inap-propriate governance and policies -- 19
3 Lack of strategic architecture alignment etc -- 16
4 Lack of data engineering and poor configuration -- 14
5 Soft issues and change impacts -- 12
6 Lack of an engineering approach lack of precision etc -- 6
7 Technology issues -- 3
Factors causing ERP failure
47
22
20
19
17
14
6 2
1Executive custody strategic solution architect accountability -- 22
2 Effective change facilitation -- 20
3 Strategic architecture alignment etc -- 19
4 Data engineering and configuration -- 17
5 Engineering approach design against failure precision etc -- 14
6 Business integration training processes CBT --6
7 Technology -- 2
Factors for ERP reimplementation success
The value of technology is determined by the person using the technology
49
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
bull ldquoEnterprise Resource Planningrdquo = ERP Systemsbull or bull Integrated Business Information Systemsrdquo = IBIS
bull = ALL the information ldquorepositoriesrdquobull = databasesbull = tablesbull = listsbull = filing drawers folders
bull real world items that require description and managementbull
bull + the numerical computations workflow and other activities that are executed with the numbers (and text) stored in these repositories
bull ALL of which can be done by human beings -- including making a messbull
What is an ERP IBISA filing cabinet
51
IBIS ndash what every company REALLY has
Etc etc etc
Custom-ization
In-house custom development
Industry specific package
Brandname ERP = FRED
Spreadsheets
Data warehouse and BI
52
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
53
bull Stalled ERP implementation
bull CEO bought into ldquoERP as a strategic resourcerdquo based on my approach
bull Highly structured strategic Product Class taxonomy
bull Clever software to add products and maintain high quality master data
bull Projects module
bull Brand Management expense taxonomy
bull Clever software to create a project for every brand line with these expense heads
bull Direct integration with General Ledger
bull Comprehensive Brand Project Management and reporting to Principals in Europe
bull New account increased turnover significantly because could do something competitors could NOT do
Dramatic improvements in competitiveness growth and profitability are the ONLY valid arbiters of the success of an ERP implementation or a strategic plan
Case Study Strategic Engineered Precision Configuration WITH Clever Customization to support the ESSENCE
Data engineering
Data engineering principlesCase study
1 ERP Dramatic increase in management information
2 Reduction in head count
3 Dramatic reduction in audit time and cost
4 Unqualified balance sheet first time in 15 years
5 Presented with the client at a public conference
1 Strategic ndash Essence of the Business and how it thrives
2 Engineered ndash rigorous systematic comprehensively tried and tested methods standard conventions expert practitioners etc
3 Precision ndash exact carefully design meticulously fashioned
4 Taxonomies ndash hierarchical information classifications ordering and organizing business information
5 Coupled to precision code schemes which adhere to a number of very specific coding rules and conventions
6 A total solution
Founded on Strategic Engineered Precision Taxonomies (SEPTcopy)
57
Define Strategic Engineered Precision Configuration
bull Configuring the ERP so that it PRECISELY models the real worldbull The goal is that any executive manager supervisor or operator
can look at the configuration and say ldquoYES this IS my businessrdquobull Founded on master data taxonomies ndash structured semantic
contentbull Coupled to custom business specific attributesbull Supplemented by highly structured record level configurationbull Supporting small pieces of clever custom development that add
huge value and create huge strategic and operational opportunities
An ERP is a huge precision data processing factory
Feed it precision data
58
Conventional taxonomy example
ANIMALSELEPHANTSRHINOCEROSDOGSCATS
LIONSLEOPARDSDOMESTIC CATS
Persian CatsDomestic Short Hair Catsetc
59
Taxonomy defined
1 Logical word (semantic structure)
2 Precision vocabulary of preferred terms
3 Conveys understanding between humans with relevant knowledge and experience
4 Once linked to a precision code scheme the most important communication mechanism between computers and people
5 An art and a science
6 Once it is right it is OBVIOUS
Taxonomy example
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
61
Taxonomy relevance
1 Essential to effective operational and strategic use of business software
2 Nearly ALL validation lists (drop down lists) chart of accounts etc
3 Large body of expertise ndash Botany Zoology military filing Library Science Information Management etc
4 Unknown to many (most) IT professionals and business people
62
A computer isAn adding machine calculator
011+1=101+1+1=111+1+1+1=100
Called a ldquobitrdquo
8 bits make a byte
2 bytes make an ASCII character
A= ldquo41rdquo hex
0 1
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
26
Three alternative ERP value scenarios Unlocking the TRUE potential of ERP IBIS 100 1000 x the norm
1000
1 Current industry norm for process
based ldquoBest Practicerdquo
0
10X 001
100
0
2 Strategic precision
configuration with CEO Executive Custody
X 1
XXX 10
0
3 Strategic customizationWith CEO Custody
This is the ONLY valid scenario but it seldom
occurs
Relative strategic value measured in terms of business competitiveness growth and
profitability
27
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
28
What is strategyAn executive responsibility
Thrive
Strategy ndash Doing the right things
Tact
ics
ndash D
oin
g t
hin
gs
right
SurviveDie slowly
Die fast
Professor Malcolm McDonald
The time dependency of strategy
Professor Malcolm McDonald -- httpwwwmalcolm-mcdonaldcom
The time dependency of strategy
Professor Malcolm McDonald -- httpwwwmalcolm-mcdonaldcom
The time dependency of strategy
Professor Malcolm McDonald
The time dependency of strategyfrom good to GREAT
Analysis of the strategic environmentThe CEO owns this view
34
What IS Strategy
The Essence of WHY the Organization exists and HOW it THRIVES
1 Virtually NEVER changes
2 Intuited
3 Discovered NOT invented
35
Determining the ESSENCE of the business and how it thrives
1 Experienced strategic facilitator
2 Interview each executive one on one starting with the CEO
3 ldquoPlease will you tell me the essence of your business and how it thrives ndash what differentiates you from your competitionrdquo
4 Listen carefully
5 Take lots of notes
6 After completing the interviews synthesize ALL the views to arrive at a SINGLE SENTENCE amplified as necessary with further detail
7 If an executive differs with the CEO then unless the CEO has just arrived the CEOrsquos view must prevail particularly if the CEO is the founder or has been there for many years
8 New executives can be FAR off the mark
36
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
37
There IS great opportunityERP can and should add value
38
Key principles of executive level strategic decision making
1 85 of the basis of executive decision making is soft and tacit information
2 Skim ndash headlines
3 Maximum focus at the start of a report ndash the first page
4 8020 ndash Pareto ndash the Critical Key issues
5 Fast
6 Decisive
7 Right more than wrong
8 High value
9 Intuitive
Critical principle ndash constraint and opportunity -- cognitive span
Drill downA function of the content
41
Personnel Strategically Aligned Key Performance Indicators (KPIrsquos)
Tell me how you want me to behave and I will tell you HOW to measure me
Tell me how you are going to measure me and I will tell you how I am going to behave
Turn it around
Some key considerations with regard to decision making
43
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
Pulse Measurement
1 Concise diagnostic intervention ndash 1 to 10 days
2 Starts with executive interviews ndash understand the Essence of the Business and how it Thrives and Critical Concerns
3 Drill down to systems
4 +- 7 bullet point findings weighted
5 +- 7 recommended actions weighted
6 Findings frequently so obvious and so practical client can continue unaided
7 Strategic advisory and or project leadership to implement recommendations
Analysis of consolidated findings
httpswwwdropboxcomshvfkrz5p5yliwwaryV7SrD6kSh
46
30
1916
14
126 3
1 Mythology hype amp tradition -- 30
2 Lack of executive custody inap-propriate governance and policies -- 19
3 Lack of strategic architecture alignment etc -- 16
4 Lack of data engineering and poor configuration -- 14
5 Soft issues and change impacts -- 12
6 Lack of an engineering approach lack of precision etc -- 6
7 Technology issues -- 3
Factors causing ERP failure
47
22
20
19
17
14
6 2
1Executive custody strategic solution architect accountability -- 22
2 Effective change facilitation -- 20
3 Strategic architecture alignment etc -- 19
4 Data engineering and configuration -- 17
5 Engineering approach design against failure precision etc -- 14
6 Business integration training processes CBT --6
7 Technology -- 2
Factors for ERP reimplementation success
The value of technology is determined by the person using the technology
49
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
bull ldquoEnterprise Resource Planningrdquo = ERP Systemsbull or bull Integrated Business Information Systemsrdquo = IBIS
bull = ALL the information ldquorepositoriesrdquobull = databasesbull = tablesbull = listsbull = filing drawers folders
bull real world items that require description and managementbull
bull + the numerical computations workflow and other activities that are executed with the numbers (and text) stored in these repositories
bull ALL of which can be done by human beings -- including making a messbull
What is an ERP IBISA filing cabinet
51
IBIS ndash what every company REALLY has
Etc etc etc
Custom-ization
In-house custom development
Industry specific package
Brandname ERP = FRED
Spreadsheets
Data warehouse and BI
52
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
53
bull Stalled ERP implementation
bull CEO bought into ldquoERP as a strategic resourcerdquo based on my approach
bull Highly structured strategic Product Class taxonomy
bull Clever software to add products and maintain high quality master data
bull Projects module
bull Brand Management expense taxonomy
bull Clever software to create a project for every brand line with these expense heads
bull Direct integration with General Ledger
bull Comprehensive Brand Project Management and reporting to Principals in Europe
bull New account increased turnover significantly because could do something competitors could NOT do
Dramatic improvements in competitiveness growth and profitability are the ONLY valid arbiters of the success of an ERP implementation or a strategic plan
Case Study Strategic Engineered Precision Configuration WITH Clever Customization to support the ESSENCE
Data engineering
Data engineering principlesCase study
1 ERP Dramatic increase in management information
2 Reduction in head count
3 Dramatic reduction in audit time and cost
4 Unqualified balance sheet first time in 15 years
5 Presented with the client at a public conference
1 Strategic ndash Essence of the Business and how it thrives
2 Engineered ndash rigorous systematic comprehensively tried and tested methods standard conventions expert practitioners etc
3 Precision ndash exact carefully design meticulously fashioned
4 Taxonomies ndash hierarchical information classifications ordering and organizing business information
5 Coupled to precision code schemes which adhere to a number of very specific coding rules and conventions
6 A total solution
Founded on Strategic Engineered Precision Taxonomies (SEPTcopy)
57
Define Strategic Engineered Precision Configuration
bull Configuring the ERP so that it PRECISELY models the real worldbull The goal is that any executive manager supervisor or operator
can look at the configuration and say ldquoYES this IS my businessrdquobull Founded on master data taxonomies ndash structured semantic
contentbull Coupled to custom business specific attributesbull Supplemented by highly structured record level configurationbull Supporting small pieces of clever custom development that add
huge value and create huge strategic and operational opportunities
An ERP is a huge precision data processing factory
Feed it precision data
58
Conventional taxonomy example
ANIMALSELEPHANTSRHINOCEROSDOGSCATS
LIONSLEOPARDSDOMESTIC CATS
Persian CatsDomestic Short Hair Catsetc
59
Taxonomy defined
1 Logical word (semantic structure)
2 Precision vocabulary of preferred terms
3 Conveys understanding between humans with relevant knowledge and experience
4 Once linked to a precision code scheme the most important communication mechanism between computers and people
5 An art and a science
6 Once it is right it is OBVIOUS
Taxonomy example
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
61
Taxonomy relevance
1 Essential to effective operational and strategic use of business software
2 Nearly ALL validation lists (drop down lists) chart of accounts etc
3 Large body of expertise ndash Botany Zoology military filing Library Science Information Management etc
4 Unknown to many (most) IT professionals and business people
62
A computer isAn adding machine calculator
011+1=101+1+1=111+1+1+1=100
Called a ldquobitrdquo
8 bits make a byte
2 bytes make an ASCII character
A= ldquo41rdquo hex
0 1
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
27
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
28
What is strategyAn executive responsibility
Thrive
Strategy ndash Doing the right things
Tact
ics
ndash D
oin
g t
hin
gs
right
SurviveDie slowly
Die fast
Professor Malcolm McDonald
The time dependency of strategy
Professor Malcolm McDonald -- httpwwwmalcolm-mcdonaldcom
The time dependency of strategy
Professor Malcolm McDonald -- httpwwwmalcolm-mcdonaldcom
The time dependency of strategy
Professor Malcolm McDonald
The time dependency of strategyfrom good to GREAT
Analysis of the strategic environmentThe CEO owns this view
34
What IS Strategy
The Essence of WHY the Organization exists and HOW it THRIVES
1 Virtually NEVER changes
2 Intuited
3 Discovered NOT invented
35
Determining the ESSENCE of the business and how it thrives
1 Experienced strategic facilitator
2 Interview each executive one on one starting with the CEO
3 ldquoPlease will you tell me the essence of your business and how it thrives ndash what differentiates you from your competitionrdquo
4 Listen carefully
5 Take lots of notes
6 After completing the interviews synthesize ALL the views to arrive at a SINGLE SENTENCE amplified as necessary with further detail
7 If an executive differs with the CEO then unless the CEO has just arrived the CEOrsquos view must prevail particularly if the CEO is the founder or has been there for many years
8 New executives can be FAR off the mark
36
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
37
There IS great opportunityERP can and should add value
38
Key principles of executive level strategic decision making
1 85 of the basis of executive decision making is soft and tacit information
2 Skim ndash headlines
3 Maximum focus at the start of a report ndash the first page
4 8020 ndash Pareto ndash the Critical Key issues
5 Fast
6 Decisive
7 Right more than wrong
8 High value
9 Intuitive
Critical principle ndash constraint and opportunity -- cognitive span
Drill downA function of the content
41
Personnel Strategically Aligned Key Performance Indicators (KPIrsquos)
Tell me how you want me to behave and I will tell you HOW to measure me
Tell me how you are going to measure me and I will tell you how I am going to behave
Turn it around
Some key considerations with regard to decision making
43
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
Pulse Measurement
1 Concise diagnostic intervention ndash 1 to 10 days
2 Starts with executive interviews ndash understand the Essence of the Business and how it Thrives and Critical Concerns
3 Drill down to systems
4 +- 7 bullet point findings weighted
5 +- 7 recommended actions weighted
6 Findings frequently so obvious and so practical client can continue unaided
7 Strategic advisory and or project leadership to implement recommendations
Analysis of consolidated findings
httpswwwdropboxcomshvfkrz5p5yliwwaryV7SrD6kSh
46
30
1916
14
126 3
1 Mythology hype amp tradition -- 30
2 Lack of executive custody inap-propriate governance and policies -- 19
3 Lack of strategic architecture alignment etc -- 16
4 Lack of data engineering and poor configuration -- 14
5 Soft issues and change impacts -- 12
6 Lack of an engineering approach lack of precision etc -- 6
7 Technology issues -- 3
Factors causing ERP failure
47
22
20
19
17
14
6 2
1Executive custody strategic solution architect accountability -- 22
2 Effective change facilitation -- 20
3 Strategic architecture alignment etc -- 19
4 Data engineering and configuration -- 17
5 Engineering approach design against failure precision etc -- 14
6 Business integration training processes CBT --6
7 Technology -- 2
Factors for ERP reimplementation success
The value of technology is determined by the person using the technology
49
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
bull ldquoEnterprise Resource Planningrdquo = ERP Systemsbull or bull Integrated Business Information Systemsrdquo = IBIS
bull = ALL the information ldquorepositoriesrdquobull = databasesbull = tablesbull = listsbull = filing drawers folders
bull real world items that require description and managementbull
bull + the numerical computations workflow and other activities that are executed with the numbers (and text) stored in these repositories
bull ALL of which can be done by human beings -- including making a messbull
What is an ERP IBISA filing cabinet
51
IBIS ndash what every company REALLY has
Etc etc etc
Custom-ization
In-house custom development
Industry specific package
Brandname ERP = FRED
Spreadsheets
Data warehouse and BI
52
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
53
bull Stalled ERP implementation
bull CEO bought into ldquoERP as a strategic resourcerdquo based on my approach
bull Highly structured strategic Product Class taxonomy
bull Clever software to add products and maintain high quality master data
bull Projects module
bull Brand Management expense taxonomy
bull Clever software to create a project for every brand line with these expense heads
bull Direct integration with General Ledger
bull Comprehensive Brand Project Management and reporting to Principals in Europe
bull New account increased turnover significantly because could do something competitors could NOT do
Dramatic improvements in competitiveness growth and profitability are the ONLY valid arbiters of the success of an ERP implementation or a strategic plan
Case Study Strategic Engineered Precision Configuration WITH Clever Customization to support the ESSENCE
Data engineering
Data engineering principlesCase study
1 ERP Dramatic increase in management information
2 Reduction in head count
3 Dramatic reduction in audit time and cost
4 Unqualified balance sheet first time in 15 years
5 Presented with the client at a public conference
1 Strategic ndash Essence of the Business and how it thrives
2 Engineered ndash rigorous systematic comprehensively tried and tested methods standard conventions expert practitioners etc
3 Precision ndash exact carefully design meticulously fashioned
4 Taxonomies ndash hierarchical information classifications ordering and organizing business information
5 Coupled to precision code schemes which adhere to a number of very specific coding rules and conventions
6 A total solution
Founded on Strategic Engineered Precision Taxonomies (SEPTcopy)
57
Define Strategic Engineered Precision Configuration
bull Configuring the ERP so that it PRECISELY models the real worldbull The goal is that any executive manager supervisor or operator
can look at the configuration and say ldquoYES this IS my businessrdquobull Founded on master data taxonomies ndash structured semantic
contentbull Coupled to custom business specific attributesbull Supplemented by highly structured record level configurationbull Supporting small pieces of clever custom development that add
huge value and create huge strategic and operational opportunities
An ERP is a huge precision data processing factory
Feed it precision data
58
Conventional taxonomy example
ANIMALSELEPHANTSRHINOCEROSDOGSCATS
LIONSLEOPARDSDOMESTIC CATS
Persian CatsDomestic Short Hair Catsetc
59
Taxonomy defined
1 Logical word (semantic structure)
2 Precision vocabulary of preferred terms
3 Conveys understanding between humans with relevant knowledge and experience
4 Once linked to a precision code scheme the most important communication mechanism between computers and people
5 An art and a science
6 Once it is right it is OBVIOUS
Taxonomy example
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
61
Taxonomy relevance
1 Essential to effective operational and strategic use of business software
2 Nearly ALL validation lists (drop down lists) chart of accounts etc
3 Large body of expertise ndash Botany Zoology military filing Library Science Information Management etc
4 Unknown to many (most) IT professionals and business people
62
A computer isAn adding machine calculator
011+1=101+1+1=111+1+1+1=100
Called a ldquobitrdquo
8 bits make a byte
2 bytes make an ASCII character
A= ldquo41rdquo hex
0 1
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
28
What is strategyAn executive responsibility
Thrive
Strategy ndash Doing the right things
Tact
ics
ndash D
oin
g t
hin
gs
right
SurviveDie slowly
Die fast
Professor Malcolm McDonald
The time dependency of strategy
Professor Malcolm McDonald -- httpwwwmalcolm-mcdonaldcom
The time dependency of strategy
Professor Malcolm McDonald -- httpwwwmalcolm-mcdonaldcom
The time dependency of strategy
Professor Malcolm McDonald
The time dependency of strategyfrom good to GREAT
Analysis of the strategic environmentThe CEO owns this view
34
What IS Strategy
The Essence of WHY the Organization exists and HOW it THRIVES
1 Virtually NEVER changes
2 Intuited
3 Discovered NOT invented
35
Determining the ESSENCE of the business and how it thrives
1 Experienced strategic facilitator
2 Interview each executive one on one starting with the CEO
3 ldquoPlease will you tell me the essence of your business and how it thrives ndash what differentiates you from your competitionrdquo
4 Listen carefully
5 Take lots of notes
6 After completing the interviews synthesize ALL the views to arrive at a SINGLE SENTENCE amplified as necessary with further detail
7 If an executive differs with the CEO then unless the CEO has just arrived the CEOrsquos view must prevail particularly if the CEO is the founder or has been there for many years
8 New executives can be FAR off the mark
36
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
37
There IS great opportunityERP can and should add value
38
Key principles of executive level strategic decision making
1 85 of the basis of executive decision making is soft and tacit information
2 Skim ndash headlines
3 Maximum focus at the start of a report ndash the first page
4 8020 ndash Pareto ndash the Critical Key issues
5 Fast
6 Decisive
7 Right more than wrong
8 High value
9 Intuitive
Critical principle ndash constraint and opportunity -- cognitive span
Drill downA function of the content
41
Personnel Strategically Aligned Key Performance Indicators (KPIrsquos)
Tell me how you want me to behave and I will tell you HOW to measure me
Tell me how you are going to measure me and I will tell you how I am going to behave
Turn it around
Some key considerations with regard to decision making
43
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
Pulse Measurement
1 Concise diagnostic intervention ndash 1 to 10 days
2 Starts with executive interviews ndash understand the Essence of the Business and how it Thrives and Critical Concerns
3 Drill down to systems
4 +- 7 bullet point findings weighted
5 +- 7 recommended actions weighted
6 Findings frequently so obvious and so practical client can continue unaided
7 Strategic advisory and or project leadership to implement recommendations
Analysis of consolidated findings
httpswwwdropboxcomshvfkrz5p5yliwwaryV7SrD6kSh
46
30
1916
14
126 3
1 Mythology hype amp tradition -- 30
2 Lack of executive custody inap-propriate governance and policies -- 19
3 Lack of strategic architecture alignment etc -- 16
4 Lack of data engineering and poor configuration -- 14
5 Soft issues and change impacts -- 12
6 Lack of an engineering approach lack of precision etc -- 6
7 Technology issues -- 3
Factors causing ERP failure
47
22
20
19
17
14
6 2
1Executive custody strategic solution architect accountability -- 22
2 Effective change facilitation -- 20
3 Strategic architecture alignment etc -- 19
4 Data engineering and configuration -- 17
5 Engineering approach design against failure precision etc -- 14
6 Business integration training processes CBT --6
7 Technology -- 2
Factors for ERP reimplementation success
The value of technology is determined by the person using the technology
49
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
bull ldquoEnterprise Resource Planningrdquo = ERP Systemsbull or bull Integrated Business Information Systemsrdquo = IBIS
bull = ALL the information ldquorepositoriesrdquobull = databasesbull = tablesbull = listsbull = filing drawers folders
bull real world items that require description and managementbull
bull + the numerical computations workflow and other activities that are executed with the numbers (and text) stored in these repositories
bull ALL of which can be done by human beings -- including making a messbull
What is an ERP IBISA filing cabinet
51
IBIS ndash what every company REALLY has
Etc etc etc
Custom-ization
In-house custom development
Industry specific package
Brandname ERP = FRED
Spreadsheets
Data warehouse and BI
52
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
53
bull Stalled ERP implementation
bull CEO bought into ldquoERP as a strategic resourcerdquo based on my approach
bull Highly structured strategic Product Class taxonomy
bull Clever software to add products and maintain high quality master data
bull Projects module
bull Brand Management expense taxonomy
bull Clever software to create a project for every brand line with these expense heads
bull Direct integration with General Ledger
bull Comprehensive Brand Project Management and reporting to Principals in Europe
bull New account increased turnover significantly because could do something competitors could NOT do
Dramatic improvements in competitiveness growth and profitability are the ONLY valid arbiters of the success of an ERP implementation or a strategic plan
Case Study Strategic Engineered Precision Configuration WITH Clever Customization to support the ESSENCE
Data engineering
Data engineering principlesCase study
1 ERP Dramatic increase in management information
2 Reduction in head count
3 Dramatic reduction in audit time and cost
4 Unqualified balance sheet first time in 15 years
5 Presented with the client at a public conference
1 Strategic ndash Essence of the Business and how it thrives
2 Engineered ndash rigorous systematic comprehensively tried and tested methods standard conventions expert practitioners etc
3 Precision ndash exact carefully design meticulously fashioned
4 Taxonomies ndash hierarchical information classifications ordering and organizing business information
5 Coupled to precision code schemes which adhere to a number of very specific coding rules and conventions
6 A total solution
Founded on Strategic Engineered Precision Taxonomies (SEPTcopy)
57
Define Strategic Engineered Precision Configuration
bull Configuring the ERP so that it PRECISELY models the real worldbull The goal is that any executive manager supervisor or operator
can look at the configuration and say ldquoYES this IS my businessrdquobull Founded on master data taxonomies ndash structured semantic
contentbull Coupled to custom business specific attributesbull Supplemented by highly structured record level configurationbull Supporting small pieces of clever custom development that add
huge value and create huge strategic and operational opportunities
An ERP is a huge precision data processing factory
Feed it precision data
58
Conventional taxonomy example
ANIMALSELEPHANTSRHINOCEROSDOGSCATS
LIONSLEOPARDSDOMESTIC CATS
Persian CatsDomestic Short Hair Catsetc
59
Taxonomy defined
1 Logical word (semantic structure)
2 Precision vocabulary of preferred terms
3 Conveys understanding between humans with relevant knowledge and experience
4 Once linked to a precision code scheme the most important communication mechanism between computers and people
5 An art and a science
6 Once it is right it is OBVIOUS
Taxonomy example
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
61
Taxonomy relevance
1 Essential to effective operational and strategic use of business software
2 Nearly ALL validation lists (drop down lists) chart of accounts etc
3 Large body of expertise ndash Botany Zoology military filing Library Science Information Management etc
4 Unknown to many (most) IT professionals and business people
62
A computer isAn adding machine calculator
011+1=101+1+1=111+1+1+1=100
Called a ldquobitrdquo
8 bits make a byte
2 bytes make an ASCII character
A= ldquo41rdquo hex
0 1
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
The time dependency of strategy
Professor Malcolm McDonald -- httpwwwmalcolm-mcdonaldcom
The time dependency of strategy
Professor Malcolm McDonald -- httpwwwmalcolm-mcdonaldcom
The time dependency of strategy
Professor Malcolm McDonald
The time dependency of strategyfrom good to GREAT
Analysis of the strategic environmentThe CEO owns this view
34
What IS Strategy
The Essence of WHY the Organization exists and HOW it THRIVES
1 Virtually NEVER changes
2 Intuited
3 Discovered NOT invented
35
Determining the ESSENCE of the business and how it thrives
1 Experienced strategic facilitator
2 Interview each executive one on one starting with the CEO
3 ldquoPlease will you tell me the essence of your business and how it thrives ndash what differentiates you from your competitionrdquo
4 Listen carefully
5 Take lots of notes
6 After completing the interviews synthesize ALL the views to arrive at a SINGLE SENTENCE amplified as necessary with further detail
7 If an executive differs with the CEO then unless the CEO has just arrived the CEOrsquos view must prevail particularly if the CEO is the founder or has been there for many years
8 New executives can be FAR off the mark
36
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
37
There IS great opportunityERP can and should add value
38
Key principles of executive level strategic decision making
1 85 of the basis of executive decision making is soft and tacit information
2 Skim ndash headlines
3 Maximum focus at the start of a report ndash the first page
4 8020 ndash Pareto ndash the Critical Key issues
5 Fast
6 Decisive
7 Right more than wrong
8 High value
9 Intuitive
Critical principle ndash constraint and opportunity -- cognitive span
Drill downA function of the content
41
Personnel Strategically Aligned Key Performance Indicators (KPIrsquos)
Tell me how you want me to behave and I will tell you HOW to measure me
Tell me how you are going to measure me and I will tell you how I am going to behave
Turn it around
Some key considerations with regard to decision making
43
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
Pulse Measurement
1 Concise diagnostic intervention ndash 1 to 10 days
2 Starts with executive interviews ndash understand the Essence of the Business and how it Thrives and Critical Concerns
3 Drill down to systems
4 +- 7 bullet point findings weighted
5 +- 7 recommended actions weighted
6 Findings frequently so obvious and so practical client can continue unaided
7 Strategic advisory and or project leadership to implement recommendations
Analysis of consolidated findings
httpswwwdropboxcomshvfkrz5p5yliwwaryV7SrD6kSh
46
30
1916
14
126 3
1 Mythology hype amp tradition -- 30
2 Lack of executive custody inap-propriate governance and policies -- 19
3 Lack of strategic architecture alignment etc -- 16
4 Lack of data engineering and poor configuration -- 14
5 Soft issues and change impacts -- 12
6 Lack of an engineering approach lack of precision etc -- 6
7 Technology issues -- 3
Factors causing ERP failure
47
22
20
19
17
14
6 2
1Executive custody strategic solution architect accountability -- 22
2 Effective change facilitation -- 20
3 Strategic architecture alignment etc -- 19
4 Data engineering and configuration -- 17
5 Engineering approach design against failure precision etc -- 14
6 Business integration training processes CBT --6
7 Technology -- 2
Factors for ERP reimplementation success
The value of technology is determined by the person using the technology
49
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
bull ldquoEnterprise Resource Planningrdquo = ERP Systemsbull or bull Integrated Business Information Systemsrdquo = IBIS
bull = ALL the information ldquorepositoriesrdquobull = databasesbull = tablesbull = listsbull = filing drawers folders
bull real world items that require description and managementbull
bull + the numerical computations workflow and other activities that are executed with the numbers (and text) stored in these repositories
bull ALL of which can be done by human beings -- including making a messbull
What is an ERP IBISA filing cabinet
51
IBIS ndash what every company REALLY has
Etc etc etc
Custom-ization
In-house custom development
Industry specific package
Brandname ERP = FRED
Spreadsheets
Data warehouse and BI
52
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
53
bull Stalled ERP implementation
bull CEO bought into ldquoERP as a strategic resourcerdquo based on my approach
bull Highly structured strategic Product Class taxonomy
bull Clever software to add products and maintain high quality master data
bull Projects module
bull Brand Management expense taxonomy
bull Clever software to create a project for every brand line with these expense heads
bull Direct integration with General Ledger
bull Comprehensive Brand Project Management and reporting to Principals in Europe
bull New account increased turnover significantly because could do something competitors could NOT do
Dramatic improvements in competitiveness growth and profitability are the ONLY valid arbiters of the success of an ERP implementation or a strategic plan
Case Study Strategic Engineered Precision Configuration WITH Clever Customization to support the ESSENCE
Data engineering
Data engineering principlesCase study
1 ERP Dramatic increase in management information
2 Reduction in head count
3 Dramatic reduction in audit time and cost
4 Unqualified balance sheet first time in 15 years
5 Presented with the client at a public conference
1 Strategic ndash Essence of the Business and how it thrives
2 Engineered ndash rigorous systematic comprehensively tried and tested methods standard conventions expert practitioners etc
3 Precision ndash exact carefully design meticulously fashioned
4 Taxonomies ndash hierarchical information classifications ordering and organizing business information
5 Coupled to precision code schemes which adhere to a number of very specific coding rules and conventions
6 A total solution
Founded on Strategic Engineered Precision Taxonomies (SEPTcopy)
57
Define Strategic Engineered Precision Configuration
bull Configuring the ERP so that it PRECISELY models the real worldbull The goal is that any executive manager supervisor or operator
can look at the configuration and say ldquoYES this IS my businessrdquobull Founded on master data taxonomies ndash structured semantic
contentbull Coupled to custom business specific attributesbull Supplemented by highly structured record level configurationbull Supporting small pieces of clever custom development that add
huge value and create huge strategic and operational opportunities
An ERP is a huge precision data processing factory
Feed it precision data
58
Conventional taxonomy example
ANIMALSELEPHANTSRHINOCEROSDOGSCATS
LIONSLEOPARDSDOMESTIC CATS
Persian CatsDomestic Short Hair Catsetc
59
Taxonomy defined
1 Logical word (semantic structure)
2 Precision vocabulary of preferred terms
3 Conveys understanding between humans with relevant knowledge and experience
4 Once linked to a precision code scheme the most important communication mechanism between computers and people
5 An art and a science
6 Once it is right it is OBVIOUS
Taxonomy example
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
61
Taxonomy relevance
1 Essential to effective operational and strategic use of business software
2 Nearly ALL validation lists (drop down lists) chart of accounts etc
3 Large body of expertise ndash Botany Zoology military filing Library Science Information Management etc
4 Unknown to many (most) IT professionals and business people
62
A computer isAn adding machine calculator
011+1=101+1+1=111+1+1+1=100
Called a ldquobitrdquo
8 bits make a byte
2 bytes make an ASCII character
A= ldquo41rdquo hex
0 1
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
The time dependency of strategy
Professor Malcolm McDonald -- httpwwwmalcolm-mcdonaldcom
The time dependency of strategy
Professor Malcolm McDonald
The time dependency of strategyfrom good to GREAT
Analysis of the strategic environmentThe CEO owns this view
34
What IS Strategy
The Essence of WHY the Organization exists and HOW it THRIVES
1 Virtually NEVER changes
2 Intuited
3 Discovered NOT invented
35
Determining the ESSENCE of the business and how it thrives
1 Experienced strategic facilitator
2 Interview each executive one on one starting with the CEO
3 ldquoPlease will you tell me the essence of your business and how it thrives ndash what differentiates you from your competitionrdquo
4 Listen carefully
5 Take lots of notes
6 After completing the interviews synthesize ALL the views to arrive at a SINGLE SENTENCE amplified as necessary with further detail
7 If an executive differs with the CEO then unless the CEO has just arrived the CEOrsquos view must prevail particularly if the CEO is the founder or has been there for many years
8 New executives can be FAR off the mark
36
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
37
There IS great opportunityERP can and should add value
38
Key principles of executive level strategic decision making
1 85 of the basis of executive decision making is soft and tacit information
2 Skim ndash headlines
3 Maximum focus at the start of a report ndash the first page
4 8020 ndash Pareto ndash the Critical Key issues
5 Fast
6 Decisive
7 Right more than wrong
8 High value
9 Intuitive
Critical principle ndash constraint and opportunity -- cognitive span
Drill downA function of the content
41
Personnel Strategically Aligned Key Performance Indicators (KPIrsquos)
Tell me how you want me to behave and I will tell you HOW to measure me
Tell me how you are going to measure me and I will tell you how I am going to behave
Turn it around
Some key considerations with regard to decision making
43
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
Pulse Measurement
1 Concise diagnostic intervention ndash 1 to 10 days
2 Starts with executive interviews ndash understand the Essence of the Business and how it Thrives and Critical Concerns
3 Drill down to systems
4 +- 7 bullet point findings weighted
5 +- 7 recommended actions weighted
6 Findings frequently so obvious and so practical client can continue unaided
7 Strategic advisory and or project leadership to implement recommendations
Analysis of consolidated findings
httpswwwdropboxcomshvfkrz5p5yliwwaryV7SrD6kSh
46
30
1916
14
126 3
1 Mythology hype amp tradition -- 30
2 Lack of executive custody inap-propriate governance and policies -- 19
3 Lack of strategic architecture alignment etc -- 16
4 Lack of data engineering and poor configuration -- 14
5 Soft issues and change impacts -- 12
6 Lack of an engineering approach lack of precision etc -- 6
7 Technology issues -- 3
Factors causing ERP failure
47
22
20
19
17
14
6 2
1Executive custody strategic solution architect accountability -- 22
2 Effective change facilitation -- 20
3 Strategic architecture alignment etc -- 19
4 Data engineering and configuration -- 17
5 Engineering approach design against failure precision etc -- 14
6 Business integration training processes CBT --6
7 Technology -- 2
Factors for ERP reimplementation success
The value of technology is determined by the person using the technology
49
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
bull ldquoEnterprise Resource Planningrdquo = ERP Systemsbull or bull Integrated Business Information Systemsrdquo = IBIS
bull = ALL the information ldquorepositoriesrdquobull = databasesbull = tablesbull = listsbull = filing drawers folders
bull real world items that require description and managementbull
bull + the numerical computations workflow and other activities that are executed with the numbers (and text) stored in these repositories
bull ALL of which can be done by human beings -- including making a messbull
What is an ERP IBISA filing cabinet
51
IBIS ndash what every company REALLY has
Etc etc etc
Custom-ization
In-house custom development
Industry specific package
Brandname ERP = FRED
Spreadsheets
Data warehouse and BI
52
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
53
bull Stalled ERP implementation
bull CEO bought into ldquoERP as a strategic resourcerdquo based on my approach
bull Highly structured strategic Product Class taxonomy
bull Clever software to add products and maintain high quality master data
bull Projects module
bull Brand Management expense taxonomy
bull Clever software to create a project for every brand line with these expense heads
bull Direct integration with General Ledger
bull Comprehensive Brand Project Management and reporting to Principals in Europe
bull New account increased turnover significantly because could do something competitors could NOT do
Dramatic improvements in competitiveness growth and profitability are the ONLY valid arbiters of the success of an ERP implementation or a strategic plan
Case Study Strategic Engineered Precision Configuration WITH Clever Customization to support the ESSENCE
Data engineering
Data engineering principlesCase study
1 ERP Dramatic increase in management information
2 Reduction in head count
3 Dramatic reduction in audit time and cost
4 Unqualified balance sheet first time in 15 years
5 Presented with the client at a public conference
1 Strategic ndash Essence of the Business and how it thrives
2 Engineered ndash rigorous systematic comprehensively tried and tested methods standard conventions expert practitioners etc
3 Precision ndash exact carefully design meticulously fashioned
4 Taxonomies ndash hierarchical information classifications ordering and organizing business information
5 Coupled to precision code schemes which adhere to a number of very specific coding rules and conventions
6 A total solution
Founded on Strategic Engineered Precision Taxonomies (SEPTcopy)
57
Define Strategic Engineered Precision Configuration
bull Configuring the ERP so that it PRECISELY models the real worldbull The goal is that any executive manager supervisor or operator
can look at the configuration and say ldquoYES this IS my businessrdquobull Founded on master data taxonomies ndash structured semantic
contentbull Coupled to custom business specific attributesbull Supplemented by highly structured record level configurationbull Supporting small pieces of clever custom development that add
huge value and create huge strategic and operational opportunities
An ERP is a huge precision data processing factory
Feed it precision data
58
Conventional taxonomy example
ANIMALSELEPHANTSRHINOCEROSDOGSCATS
LIONSLEOPARDSDOMESTIC CATS
Persian CatsDomestic Short Hair Catsetc
59
Taxonomy defined
1 Logical word (semantic structure)
2 Precision vocabulary of preferred terms
3 Conveys understanding between humans with relevant knowledge and experience
4 Once linked to a precision code scheme the most important communication mechanism between computers and people
5 An art and a science
6 Once it is right it is OBVIOUS
Taxonomy example
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
61
Taxonomy relevance
1 Essential to effective operational and strategic use of business software
2 Nearly ALL validation lists (drop down lists) chart of accounts etc
3 Large body of expertise ndash Botany Zoology military filing Library Science Information Management etc
4 Unknown to many (most) IT professionals and business people
62
A computer isAn adding machine calculator
011+1=101+1+1=111+1+1+1=100
Called a ldquobitrdquo
8 bits make a byte
2 bytes make an ASCII character
A= ldquo41rdquo hex
0 1
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
The time dependency of strategy
Professor Malcolm McDonald
The time dependency of strategyfrom good to GREAT
Analysis of the strategic environmentThe CEO owns this view
34
What IS Strategy
The Essence of WHY the Organization exists and HOW it THRIVES
1 Virtually NEVER changes
2 Intuited
3 Discovered NOT invented
35
Determining the ESSENCE of the business and how it thrives
1 Experienced strategic facilitator
2 Interview each executive one on one starting with the CEO
3 ldquoPlease will you tell me the essence of your business and how it thrives ndash what differentiates you from your competitionrdquo
4 Listen carefully
5 Take lots of notes
6 After completing the interviews synthesize ALL the views to arrive at a SINGLE SENTENCE amplified as necessary with further detail
7 If an executive differs with the CEO then unless the CEO has just arrived the CEOrsquos view must prevail particularly if the CEO is the founder or has been there for many years
8 New executives can be FAR off the mark
36
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
37
There IS great opportunityERP can and should add value
38
Key principles of executive level strategic decision making
1 85 of the basis of executive decision making is soft and tacit information
2 Skim ndash headlines
3 Maximum focus at the start of a report ndash the first page
4 8020 ndash Pareto ndash the Critical Key issues
5 Fast
6 Decisive
7 Right more than wrong
8 High value
9 Intuitive
Critical principle ndash constraint and opportunity -- cognitive span
Drill downA function of the content
41
Personnel Strategically Aligned Key Performance Indicators (KPIrsquos)
Tell me how you want me to behave and I will tell you HOW to measure me
Tell me how you are going to measure me and I will tell you how I am going to behave
Turn it around
Some key considerations with regard to decision making
43
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
Pulse Measurement
1 Concise diagnostic intervention ndash 1 to 10 days
2 Starts with executive interviews ndash understand the Essence of the Business and how it Thrives and Critical Concerns
3 Drill down to systems
4 +- 7 bullet point findings weighted
5 +- 7 recommended actions weighted
6 Findings frequently so obvious and so practical client can continue unaided
7 Strategic advisory and or project leadership to implement recommendations
Analysis of consolidated findings
httpswwwdropboxcomshvfkrz5p5yliwwaryV7SrD6kSh
46
30
1916
14
126 3
1 Mythology hype amp tradition -- 30
2 Lack of executive custody inap-propriate governance and policies -- 19
3 Lack of strategic architecture alignment etc -- 16
4 Lack of data engineering and poor configuration -- 14
5 Soft issues and change impacts -- 12
6 Lack of an engineering approach lack of precision etc -- 6
7 Technology issues -- 3
Factors causing ERP failure
47
22
20
19
17
14
6 2
1Executive custody strategic solution architect accountability -- 22
2 Effective change facilitation -- 20
3 Strategic architecture alignment etc -- 19
4 Data engineering and configuration -- 17
5 Engineering approach design against failure precision etc -- 14
6 Business integration training processes CBT --6
7 Technology -- 2
Factors for ERP reimplementation success
The value of technology is determined by the person using the technology
49
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
bull ldquoEnterprise Resource Planningrdquo = ERP Systemsbull or bull Integrated Business Information Systemsrdquo = IBIS
bull = ALL the information ldquorepositoriesrdquobull = databasesbull = tablesbull = listsbull = filing drawers folders
bull real world items that require description and managementbull
bull + the numerical computations workflow and other activities that are executed with the numbers (and text) stored in these repositories
bull ALL of which can be done by human beings -- including making a messbull
What is an ERP IBISA filing cabinet
51
IBIS ndash what every company REALLY has
Etc etc etc
Custom-ization
In-house custom development
Industry specific package
Brandname ERP = FRED
Spreadsheets
Data warehouse and BI
52
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
53
bull Stalled ERP implementation
bull CEO bought into ldquoERP as a strategic resourcerdquo based on my approach
bull Highly structured strategic Product Class taxonomy
bull Clever software to add products and maintain high quality master data
bull Projects module
bull Brand Management expense taxonomy
bull Clever software to create a project for every brand line with these expense heads
bull Direct integration with General Ledger
bull Comprehensive Brand Project Management and reporting to Principals in Europe
bull New account increased turnover significantly because could do something competitors could NOT do
Dramatic improvements in competitiveness growth and profitability are the ONLY valid arbiters of the success of an ERP implementation or a strategic plan
Case Study Strategic Engineered Precision Configuration WITH Clever Customization to support the ESSENCE
Data engineering
Data engineering principlesCase study
1 ERP Dramatic increase in management information
2 Reduction in head count
3 Dramatic reduction in audit time and cost
4 Unqualified balance sheet first time in 15 years
5 Presented with the client at a public conference
1 Strategic ndash Essence of the Business and how it thrives
2 Engineered ndash rigorous systematic comprehensively tried and tested methods standard conventions expert practitioners etc
3 Precision ndash exact carefully design meticulously fashioned
4 Taxonomies ndash hierarchical information classifications ordering and organizing business information
5 Coupled to precision code schemes which adhere to a number of very specific coding rules and conventions
6 A total solution
Founded on Strategic Engineered Precision Taxonomies (SEPTcopy)
57
Define Strategic Engineered Precision Configuration
bull Configuring the ERP so that it PRECISELY models the real worldbull The goal is that any executive manager supervisor or operator
can look at the configuration and say ldquoYES this IS my businessrdquobull Founded on master data taxonomies ndash structured semantic
contentbull Coupled to custom business specific attributesbull Supplemented by highly structured record level configurationbull Supporting small pieces of clever custom development that add
huge value and create huge strategic and operational opportunities
An ERP is a huge precision data processing factory
Feed it precision data
58
Conventional taxonomy example
ANIMALSELEPHANTSRHINOCEROSDOGSCATS
LIONSLEOPARDSDOMESTIC CATS
Persian CatsDomestic Short Hair Catsetc
59
Taxonomy defined
1 Logical word (semantic structure)
2 Precision vocabulary of preferred terms
3 Conveys understanding between humans with relevant knowledge and experience
4 Once linked to a precision code scheme the most important communication mechanism between computers and people
5 An art and a science
6 Once it is right it is OBVIOUS
Taxonomy example
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
61
Taxonomy relevance
1 Essential to effective operational and strategic use of business software
2 Nearly ALL validation lists (drop down lists) chart of accounts etc
3 Large body of expertise ndash Botany Zoology military filing Library Science Information Management etc
4 Unknown to many (most) IT professionals and business people
62
A computer isAn adding machine calculator
011+1=101+1+1=111+1+1+1=100
Called a ldquobitrdquo
8 bits make a byte
2 bytes make an ASCII character
A= ldquo41rdquo hex
0 1
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
The time dependency of strategyfrom good to GREAT
Analysis of the strategic environmentThe CEO owns this view
34
What IS Strategy
The Essence of WHY the Organization exists and HOW it THRIVES
1 Virtually NEVER changes
2 Intuited
3 Discovered NOT invented
35
Determining the ESSENCE of the business and how it thrives
1 Experienced strategic facilitator
2 Interview each executive one on one starting with the CEO
3 ldquoPlease will you tell me the essence of your business and how it thrives ndash what differentiates you from your competitionrdquo
4 Listen carefully
5 Take lots of notes
6 After completing the interviews synthesize ALL the views to arrive at a SINGLE SENTENCE amplified as necessary with further detail
7 If an executive differs with the CEO then unless the CEO has just arrived the CEOrsquos view must prevail particularly if the CEO is the founder or has been there for many years
8 New executives can be FAR off the mark
36
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
37
There IS great opportunityERP can and should add value
38
Key principles of executive level strategic decision making
1 85 of the basis of executive decision making is soft and tacit information
2 Skim ndash headlines
3 Maximum focus at the start of a report ndash the first page
4 8020 ndash Pareto ndash the Critical Key issues
5 Fast
6 Decisive
7 Right more than wrong
8 High value
9 Intuitive
Critical principle ndash constraint and opportunity -- cognitive span
Drill downA function of the content
41
Personnel Strategically Aligned Key Performance Indicators (KPIrsquos)
Tell me how you want me to behave and I will tell you HOW to measure me
Tell me how you are going to measure me and I will tell you how I am going to behave
Turn it around
Some key considerations with regard to decision making
43
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
Pulse Measurement
1 Concise diagnostic intervention ndash 1 to 10 days
2 Starts with executive interviews ndash understand the Essence of the Business and how it Thrives and Critical Concerns
3 Drill down to systems
4 +- 7 bullet point findings weighted
5 +- 7 recommended actions weighted
6 Findings frequently so obvious and so practical client can continue unaided
7 Strategic advisory and or project leadership to implement recommendations
Analysis of consolidated findings
httpswwwdropboxcomshvfkrz5p5yliwwaryV7SrD6kSh
46
30
1916
14
126 3
1 Mythology hype amp tradition -- 30
2 Lack of executive custody inap-propriate governance and policies -- 19
3 Lack of strategic architecture alignment etc -- 16
4 Lack of data engineering and poor configuration -- 14
5 Soft issues and change impacts -- 12
6 Lack of an engineering approach lack of precision etc -- 6
7 Technology issues -- 3
Factors causing ERP failure
47
22
20
19
17
14
6 2
1Executive custody strategic solution architect accountability -- 22
2 Effective change facilitation -- 20
3 Strategic architecture alignment etc -- 19
4 Data engineering and configuration -- 17
5 Engineering approach design against failure precision etc -- 14
6 Business integration training processes CBT --6
7 Technology -- 2
Factors for ERP reimplementation success
The value of technology is determined by the person using the technology
49
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
bull ldquoEnterprise Resource Planningrdquo = ERP Systemsbull or bull Integrated Business Information Systemsrdquo = IBIS
bull = ALL the information ldquorepositoriesrdquobull = databasesbull = tablesbull = listsbull = filing drawers folders
bull real world items that require description and managementbull
bull + the numerical computations workflow and other activities that are executed with the numbers (and text) stored in these repositories
bull ALL of which can be done by human beings -- including making a messbull
What is an ERP IBISA filing cabinet
51
IBIS ndash what every company REALLY has
Etc etc etc
Custom-ization
In-house custom development
Industry specific package
Brandname ERP = FRED
Spreadsheets
Data warehouse and BI
52
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
53
bull Stalled ERP implementation
bull CEO bought into ldquoERP as a strategic resourcerdquo based on my approach
bull Highly structured strategic Product Class taxonomy
bull Clever software to add products and maintain high quality master data
bull Projects module
bull Brand Management expense taxonomy
bull Clever software to create a project for every brand line with these expense heads
bull Direct integration with General Ledger
bull Comprehensive Brand Project Management and reporting to Principals in Europe
bull New account increased turnover significantly because could do something competitors could NOT do
Dramatic improvements in competitiveness growth and profitability are the ONLY valid arbiters of the success of an ERP implementation or a strategic plan
Case Study Strategic Engineered Precision Configuration WITH Clever Customization to support the ESSENCE
Data engineering
Data engineering principlesCase study
1 ERP Dramatic increase in management information
2 Reduction in head count
3 Dramatic reduction in audit time and cost
4 Unqualified balance sheet first time in 15 years
5 Presented with the client at a public conference
1 Strategic ndash Essence of the Business and how it thrives
2 Engineered ndash rigorous systematic comprehensively tried and tested methods standard conventions expert practitioners etc
3 Precision ndash exact carefully design meticulously fashioned
4 Taxonomies ndash hierarchical information classifications ordering and organizing business information
5 Coupled to precision code schemes which adhere to a number of very specific coding rules and conventions
6 A total solution
Founded on Strategic Engineered Precision Taxonomies (SEPTcopy)
57
Define Strategic Engineered Precision Configuration
bull Configuring the ERP so that it PRECISELY models the real worldbull The goal is that any executive manager supervisor or operator
can look at the configuration and say ldquoYES this IS my businessrdquobull Founded on master data taxonomies ndash structured semantic
contentbull Coupled to custom business specific attributesbull Supplemented by highly structured record level configurationbull Supporting small pieces of clever custom development that add
huge value and create huge strategic and operational opportunities
An ERP is a huge precision data processing factory
Feed it precision data
58
Conventional taxonomy example
ANIMALSELEPHANTSRHINOCEROSDOGSCATS
LIONSLEOPARDSDOMESTIC CATS
Persian CatsDomestic Short Hair Catsetc
59
Taxonomy defined
1 Logical word (semantic structure)
2 Precision vocabulary of preferred terms
3 Conveys understanding between humans with relevant knowledge and experience
4 Once linked to a precision code scheme the most important communication mechanism between computers and people
5 An art and a science
6 Once it is right it is OBVIOUS
Taxonomy example
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
61
Taxonomy relevance
1 Essential to effective operational and strategic use of business software
2 Nearly ALL validation lists (drop down lists) chart of accounts etc
3 Large body of expertise ndash Botany Zoology military filing Library Science Information Management etc
4 Unknown to many (most) IT professionals and business people
62
A computer isAn adding machine calculator
011+1=101+1+1=111+1+1+1=100
Called a ldquobitrdquo
8 bits make a byte
2 bytes make an ASCII character
A= ldquo41rdquo hex
0 1
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
Analysis of the strategic environmentThe CEO owns this view
34
What IS Strategy
The Essence of WHY the Organization exists and HOW it THRIVES
1 Virtually NEVER changes
2 Intuited
3 Discovered NOT invented
35
Determining the ESSENCE of the business and how it thrives
1 Experienced strategic facilitator
2 Interview each executive one on one starting with the CEO
3 ldquoPlease will you tell me the essence of your business and how it thrives ndash what differentiates you from your competitionrdquo
4 Listen carefully
5 Take lots of notes
6 After completing the interviews synthesize ALL the views to arrive at a SINGLE SENTENCE amplified as necessary with further detail
7 If an executive differs with the CEO then unless the CEO has just arrived the CEOrsquos view must prevail particularly if the CEO is the founder or has been there for many years
8 New executives can be FAR off the mark
36
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
37
There IS great opportunityERP can and should add value
38
Key principles of executive level strategic decision making
1 85 of the basis of executive decision making is soft and tacit information
2 Skim ndash headlines
3 Maximum focus at the start of a report ndash the first page
4 8020 ndash Pareto ndash the Critical Key issues
5 Fast
6 Decisive
7 Right more than wrong
8 High value
9 Intuitive
Critical principle ndash constraint and opportunity -- cognitive span
Drill downA function of the content
41
Personnel Strategically Aligned Key Performance Indicators (KPIrsquos)
Tell me how you want me to behave and I will tell you HOW to measure me
Tell me how you are going to measure me and I will tell you how I am going to behave
Turn it around
Some key considerations with regard to decision making
43
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
Pulse Measurement
1 Concise diagnostic intervention ndash 1 to 10 days
2 Starts with executive interviews ndash understand the Essence of the Business and how it Thrives and Critical Concerns
3 Drill down to systems
4 +- 7 bullet point findings weighted
5 +- 7 recommended actions weighted
6 Findings frequently so obvious and so practical client can continue unaided
7 Strategic advisory and or project leadership to implement recommendations
Analysis of consolidated findings
httpswwwdropboxcomshvfkrz5p5yliwwaryV7SrD6kSh
46
30
1916
14
126 3
1 Mythology hype amp tradition -- 30
2 Lack of executive custody inap-propriate governance and policies -- 19
3 Lack of strategic architecture alignment etc -- 16
4 Lack of data engineering and poor configuration -- 14
5 Soft issues and change impacts -- 12
6 Lack of an engineering approach lack of precision etc -- 6
7 Technology issues -- 3
Factors causing ERP failure
47
22
20
19
17
14
6 2
1Executive custody strategic solution architect accountability -- 22
2 Effective change facilitation -- 20
3 Strategic architecture alignment etc -- 19
4 Data engineering and configuration -- 17
5 Engineering approach design against failure precision etc -- 14
6 Business integration training processes CBT --6
7 Technology -- 2
Factors for ERP reimplementation success
The value of technology is determined by the person using the technology
49
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
bull ldquoEnterprise Resource Planningrdquo = ERP Systemsbull or bull Integrated Business Information Systemsrdquo = IBIS
bull = ALL the information ldquorepositoriesrdquobull = databasesbull = tablesbull = listsbull = filing drawers folders
bull real world items that require description and managementbull
bull + the numerical computations workflow and other activities that are executed with the numbers (and text) stored in these repositories
bull ALL of which can be done by human beings -- including making a messbull
What is an ERP IBISA filing cabinet
51
IBIS ndash what every company REALLY has
Etc etc etc
Custom-ization
In-house custom development
Industry specific package
Brandname ERP = FRED
Spreadsheets
Data warehouse and BI
52
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
53
bull Stalled ERP implementation
bull CEO bought into ldquoERP as a strategic resourcerdquo based on my approach
bull Highly structured strategic Product Class taxonomy
bull Clever software to add products and maintain high quality master data
bull Projects module
bull Brand Management expense taxonomy
bull Clever software to create a project for every brand line with these expense heads
bull Direct integration with General Ledger
bull Comprehensive Brand Project Management and reporting to Principals in Europe
bull New account increased turnover significantly because could do something competitors could NOT do
Dramatic improvements in competitiveness growth and profitability are the ONLY valid arbiters of the success of an ERP implementation or a strategic plan
Case Study Strategic Engineered Precision Configuration WITH Clever Customization to support the ESSENCE
Data engineering
Data engineering principlesCase study
1 ERP Dramatic increase in management information
2 Reduction in head count
3 Dramatic reduction in audit time and cost
4 Unqualified balance sheet first time in 15 years
5 Presented with the client at a public conference
1 Strategic ndash Essence of the Business and how it thrives
2 Engineered ndash rigorous systematic comprehensively tried and tested methods standard conventions expert practitioners etc
3 Precision ndash exact carefully design meticulously fashioned
4 Taxonomies ndash hierarchical information classifications ordering and organizing business information
5 Coupled to precision code schemes which adhere to a number of very specific coding rules and conventions
6 A total solution
Founded on Strategic Engineered Precision Taxonomies (SEPTcopy)
57
Define Strategic Engineered Precision Configuration
bull Configuring the ERP so that it PRECISELY models the real worldbull The goal is that any executive manager supervisor or operator
can look at the configuration and say ldquoYES this IS my businessrdquobull Founded on master data taxonomies ndash structured semantic
contentbull Coupled to custom business specific attributesbull Supplemented by highly structured record level configurationbull Supporting small pieces of clever custom development that add
huge value and create huge strategic and operational opportunities
An ERP is a huge precision data processing factory
Feed it precision data
58
Conventional taxonomy example
ANIMALSELEPHANTSRHINOCEROSDOGSCATS
LIONSLEOPARDSDOMESTIC CATS
Persian CatsDomestic Short Hair Catsetc
59
Taxonomy defined
1 Logical word (semantic structure)
2 Precision vocabulary of preferred terms
3 Conveys understanding between humans with relevant knowledge and experience
4 Once linked to a precision code scheme the most important communication mechanism between computers and people
5 An art and a science
6 Once it is right it is OBVIOUS
Taxonomy example
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
61
Taxonomy relevance
1 Essential to effective operational and strategic use of business software
2 Nearly ALL validation lists (drop down lists) chart of accounts etc
3 Large body of expertise ndash Botany Zoology military filing Library Science Information Management etc
4 Unknown to many (most) IT professionals and business people
62
A computer isAn adding machine calculator
011+1=101+1+1=111+1+1+1=100
Called a ldquobitrdquo
8 bits make a byte
2 bytes make an ASCII character
A= ldquo41rdquo hex
0 1
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
34
What IS Strategy
The Essence of WHY the Organization exists and HOW it THRIVES
1 Virtually NEVER changes
2 Intuited
3 Discovered NOT invented
35
Determining the ESSENCE of the business and how it thrives
1 Experienced strategic facilitator
2 Interview each executive one on one starting with the CEO
3 ldquoPlease will you tell me the essence of your business and how it thrives ndash what differentiates you from your competitionrdquo
4 Listen carefully
5 Take lots of notes
6 After completing the interviews synthesize ALL the views to arrive at a SINGLE SENTENCE amplified as necessary with further detail
7 If an executive differs with the CEO then unless the CEO has just arrived the CEOrsquos view must prevail particularly if the CEO is the founder or has been there for many years
8 New executives can be FAR off the mark
36
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
37
There IS great opportunityERP can and should add value
38
Key principles of executive level strategic decision making
1 85 of the basis of executive decision making is soft and tacit information
2 Skim ndash headlines
3 Maximum focus at the start of a report ndash the first page
4 8020 ndash Pareto ndash the Critical Key issues
5 Fast
6 Decisive
7 Right more than wrong
8 High value
9 Intuitive
Critical principle ndash constraint and opportunity -- cognitive span
Drill downA function of the content
41
Personnel Strategically Aligned Key Performance Indicators (KPIrsquos)
Tell me how you want me to behave and I will tell you HOW to measure me
Tell me how you are going to measure me and I will tell you how I am going to behave
Turn it around
Some key considerations with regard to decision making
43
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
Pulse Measurement
1 Concise diagnostic intervention ndash 1 to 10 days
2 Starts with executive interviews ndash understand the Essence of the Business and how it Thrives and Critical Concerns
3 Drill down to systems
4 +- 7 bullet point findings weighted
5 +- 7 recommended actions weighted
6 Findings frequently so obvious and so practical client can continue unaided
7 Strategic advisory and or project leadership to implement recommendations
Analysis of consolidated findings
httpswwwdropboxcomshvfkrz5p5yliwwaryV7SrD6kSh
46
30
1916
14
126 3
1 Mythology hype amp tradition -- 30
2 Lack of executive custody inap-propriate governance and policies -- 19
3 Lack of strategic architecture alignment etc -- 16
4 Lack of data engineering and poor configuration -- 14
5 Soft issues and change impacts -- 12
6 Lack of an engineering approach lack of precision etc -- 6
7 Technology issues -- 3
Factors causing ERP failure
47
22
20
19
17
14
6 2
1Executive custody strategic solution architect accountability -- 22
2 Effective change facilitation -- 20
3 Strategic architecture alignment etc -- 19
4 Data engineering and configuration -- 17
5 Engineering approach design against failure precision etc -- 14
6 Business integration training processes CBT --6
7 Technology -- 2
Factors for ERP reimplementation success
The value of technology is determined by the person using the technology
49
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
bull ldquoEnterprise Resource Planningrdquo = ERP Systemsbull or bull Integrated Business Information Systemsrdquo = IBIS
bull = ALL the information ldquorepositoriesrdquobull = databasesbull = tablesbull = listsbull = filing drawers folders
bull real world items that require description and managementbull
bull + the numerical computations workflow and other activities that are executed with the numbers (and text) stored in these repositories
bull ALL of which can be done by human beings -- including making a messbull
What is an ERP IBISA filing cabinet
51
IBIS ndash what every company REALLY has
Etc etc etc
Custom-ization
In-house custom development
Industry specific package
Brandname ERP = FRED
Spreadsheets
Data warehouse and BI
52
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
53
bull Stalled ERP implementation
bull CEO bought into ldquoERP as a strategic resourcerdquo based on my approach
bull Highly structured strategic Product Class taxonomy
bull Clever software to add products and maintain high quality master data
bull Projects module
bull Brand Management expense taxonomy
bull Clever software to create a project for every brand line with these expense heads
bull Direct integration with General Ledger
bull Comprehensive Brand Project Management and reporting to Principals in Europe
bull New account increased turnover significantly because could do something competitors could NOT do
Dramatic improvements in competitiveness growth and profitability are the ONLY valid arbiters of the success of an ERP implementation or a strategic plan
Case Study Strategic Engineered Precision Configuration WITH Clever Customization to support the ESSENCE
Data engineering
Data engineering principlesCase study
1 ERP Dramatic increase in management information
2 Reduction in head count
3 Dramatic reduction in audit time and cost
4 Unqualified balance sheet first time in 15 years
5 Presented with the client at a public conference
1 Strategic ndash Essence of the Business and how it thrives
2 Engineered ndash rigorous systematic comprehensively tried and tested methods standard conventions expert practitioners etc
3 Precision ndash exact carefully design meticulously fashioned
4 Taxonomies ndash hierarchical information classifications ordering and organizing business information
5 Coupled to precision code schemes which adhere to a number of very specific coding rules and conventions
6 A total solution
Founded on Strategic Engineered Precision Taxonomies (SEPTcopy)
57
Define Strategic Engineered Precision Configuration
bull Configuring the ERP so that it PRECISELY models the real worldbull The goal is that any executive manager supervisor or operator
can look at the configuration and say ldquoYES this IS my businessrdquobull Founded on master data taxonomies ndash structured semantic
contentbull Coupled to custom business specific attributesbull Supplemented by highly structured record level configurationbull Supporting small pieces of clever custom development that add
huge value and create huge strategic and operational opportunities
An ERP is a huge precision data processing factory
Feed it precision data
58
Conventional taxonomy example
ANIMALSELEPHANTSRHINOCEROSDOGSCATS
LIONSLEOPARDSDOMESTIC CATS
Persian CatsDomestic Short Hair Catsetc
59
Taxonomy defined
1 Logical word (semantic structure)
2 Precision vocabulary of preferred terms
3 Conveys understanding between humans with relevant knowledge and experience
4 Once linked to a precision code scheme the most important communication mechanism between computers and people
5 An art and a science
6 Once it is right it is OBVIOUS
Taxonomy example
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
61
Taxonomy relevance
1 Essential to effective operational and strategic use of business software
2 Nearly ALL validation lists (drop down lists) chart of accounts etc
3 Large body of expertise ndash Botany Zoology military filing Library Science Information Management etc
4 Unknown to many (most) IT professionals and business people
62
A computer isAn adding machine calculator
011+1=101+1+1=111+1+1+1=100
Called a ldquobitrdquo
8 bits make a byte
2 bytes make an ASCII character
A= ldquo41rdquo hex
0 1
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
35
Determining the ESSENCE of the business and how it thrives
1 Experienced strategic facilitator
2 Interview each executive one on one starting with the CEO
3 ldquoPlease will you tell me the essence of your business and how it thrives ndash what differentiates you from your competitionrdquo
4 Listen carefully
5 Take lots of notes
6 After completing the interviews synthesize ALL the views to arrive at a SINGLE SENTENCE amplified as necessary with further detail
7 If an executive differs with the CEO then unless the CEO has just arrived the CEOrsquos view must prevail particularly if the CEO is the founder or has been there for many years
8 New executives can be FAR off the mark
36
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
37
There IS great opportunityERP can and should add value
38
Key principles of executive level strategic decision making
1 85 of the basis of executive decision making is soft and tacit information
2 Skim ndash headlines
3 Maximum focus at the start of a report ndash the first page
4 8020 ndash Pareto ndash the Critical Key issues
5 Fast
6 Decisive
7 Right more than wrong
8 High value
9 Intuitive
Critical principle ndash constraint and opportunity -- cognitive span
Drill downA function of the content
41
Personnel Strategically Aligned Key Performance Indicators (KPIrsquos)
Tell me how you want me to behave and I will tell you HOW to measure me
Tell me how you are going to measure me and I will tell you how I am going to behave
Turn it around
Some key considerations with regard to decision making
43
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
Pulse Measurement
1 Concise diagnostic intervention ndash 1 to 10 days
2 Starts with executive interviews ndash understand the Essence of the Business and how it Thrives and Critical Concerns
3 Drill down to systems
4 +- 7 bullet point findings weighted
5 +- 7 recommended actions weighted
6 Findings frequently so obvious and so practical client can continue unaided
7 Strategic advisory and or project leadership to implement recommendations
Analysis of consolidated findings
httpswwwdropboxcomshvfkrz5p5yliwwaryV7SrD6kSh
46
30
1916
14
126 3
1 Mythology hype amp tradition -- 30
2 Lack of executive custody inap-propriate governance and policies -- 19
3 Lack of strategic architecture alignment etc -- 16
4 Lack of data engineering and poor configuration -- 14
5 Soft issues and change impacts -- 12
6 Lack of an engineering approach lack of precision etc -- 6
7 Technology issues -- 3
Factors causing ERP failure
47
22
20
19
17
14
6 2
1Executive custody strategic solution architect accountability -- 22
2 Effective change facilitation -- 20
3 Strategic architecture alignment etc -- 19
4 Data engineering and configuration -- 17
5 Engineering approach design against failure precision etc -- 14
6 Business integration training processes CBT --6
7 Technology -- 2
Factors for ERP reimplementation success
The value of technology is determined by the person using the technology
49
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
bull ldquoEnterprise Resource Planningrdquo = ERP Systemsbull or bull Integrated Business Information Systemsrdquo = IBIS
bull = ALL the information ldquorepositoriesrdquobull = databasesbull = tablesbull = listsbull = filing drawers folders
bull real world items that require description and managementbull
bull + the numerical computations workflow and other activities that are executed with the numbers (and text) stored in these repositories
bull ALL of which can be done by human beings -- including making a messbull
What is an ERP IBISA filing cabinet
51
IBIS ndash what every company REALLY has
Etc etc etc
Custom-ization
In-house custom development
Industry specific package
Brandname ERP = FRED
Spreadsheets
Data warehouse and BI
52
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
53
bull Stalled ERP implementation
bull CEO bought into ldquoERP as a strategic resourcerdquo based on my approach
bull Highly structured strategic Product Class taxonomy
bull Clever software to add products and maintain high quality master data
bull Projects module
bull Brand Management expense taxonomy
bull Clever software to create a project for every brand line with these expense heads
bull Direct integration with General Ledger
bull Comprehensive Brand Project Management and reporting to Principals in Europe
bull New account increased turnover significantly because could do something competitors could NOT do
Dramatic improvements in competitiveness growth and profitability are the ONLY valid arbiters of the success of an ERP implementation or a strategic plan
Case Study Strategic Engineered Precision Configuration WITH Clever Customization to support the ESSENCE
Data engineering
Data engineering principlesCase study
1 ERP Dramatic increase in management information
2 Reduction in head count
3 Dramatic reduction in audit time and cost
4 Unqualified balance sheet first time in 15 years
5 Presented with the client at a public conference
1 Strategic ndash Essence of the Business and how it thrives
2 Engineered ndash rigorous systematic comprehensively tried and tested methods standard conventions expert practitioners etc
3 Precision ndash exact carefully design meticulously fashioned
4 Taxonomies ndash hierarchical information classifications ordering and organizing business information
5 Coupled to precision code schemes which adhere to a number of very specific coding rules and conventions
6 A total solution
Founded on Strategic Engineered Precision Taxonomies (SEPTcopy)
57
Define Strategic Engineered Precision Configuration
bull Configuring the ERP so that it PRECISELY models the real worldbull The goal is that any executive manager supervisor or operator
can look at the configuration and say ldquoYES this IS my businessrdquobull Founded on master data taxonomies ndash structured semantic
contentbull Coupled to custom business specific attributesbull Supplemented by highly structured record level configurationbull Supporting small pieces of clever custom development that add
huge value and create huge strategic and operational opportunities
An ERP is a huge precision data processing factory
Feed it precision data
58
Conventional taxonomy example
ANIMALSELEPHANTSRHINOCEROSDOGSCATS
LIONSLEOPARDSDOMESTIC CATS
Persian CatsDomestic Short Hair Catsetc
59
Taxonomy defined
1 Logical word (semantic structure)
2 Precision vocabulary of preferred terms
3 Conveys understanding between humans with relevant knowledge and experience
4 Once linked to a precision code scheme the most important communication mechanism between computers and people
5 An art and a science
6 Once it is right it is OBVIOUS
Taxonomy example
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
61
Taxonomy relevance
1 Essential to effective operational and strategic use of business software
2 Nearly ALL validation lists (drop down lists) chart of accounts etc
3 Large body of expertise ndash Botany Zoology military filing Library Science Information Management etc
4 Unknown to many (most) IT professionals and business people
62
A computer isAn adding machine calculator
011+1=101+1+1=111+1+1+1=100
Called a ldquobitrdquo
8 bits make a byte
2 bytes make an ASCII character
A= ldquo41rdquo hex
0 1
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
36
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
37
There IS great opportunityERP can and should add value
38
Key principles of executive level strategic decision making
1 85 of the basis of executive decision making is soft and tacit information
2 Skim ndash headlines
3 Maximum focus at the start of a report ndash the first page
4 8020 ndash Pareto ndash the Critical Key issues
5 Fast
6 Decisive
7 Right more than wrong
8 High value
9 Intuitive
Critical principle ndash constraint and opportunity -- cognitive span
Drill downA function of the content
41
Personnel Strategically Aligned Key Performance Indicators (KPIrsquos)
Tell me how you want me to behave and I will tell you HOW to measure me
Tell me how you are going to measure me and I will tell you how I am going to behave
Turn it around
Some key considerations with regard to decision making
43
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
Pulse Measurement
1 Concise diagnostic intervention ndash 1 to 10 days
2 Starts with executive interviews ndash understand the Essence of the Business and how it Thrives and Critical Concerns
3 Drill down to systems
4 +- 7 bullet point findings weighted
5 +- 7 recommended actions weighted
6 Findings frequently so obvious and so practical client can continue unaided
7 Strategic advisory and or project leadership to implement recommendations
Analysis of consolidated findings
httpswwwdropboxcomshvfkrz5p5yliwwaryV7SrD6kSh
46
30
1916
14
126 3
1 Mythology hype amp tradition -- 30
2 Lack of executive custody inap-propriate governance and policies -- 19
3 Lack of strategic architecture alignment etc -- 16
4 Lack of data engineering and poor configuration -- 14
5 Soft issues and change impacts -- 12
6 Lack of an engineering approach lack of precision etc -- 6
7 Technology issues -- 3
Factors causing ERP failure
47
22
20
19
17
14
6 2
1Executive custody strategic solution architect accountability -- 22
2 Effective change facilitation -- 20
3 Strategic architecture alignment etc -- 19
4 Data engineering and configuration -- 17
5 Engineering approach design against failure precision etc -- 14
6 Business integration training processes CBT --6
7 Technology -- 2
Factors for ERP reimplementation success
The value of technology is determined by the person using the technology
49
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
bull ldquoEnterprise Resource Planningrdquo = ERP Systemsbull or bull Integrated Business Information Systemsrdquo = IBIS
bull = ALL the information ldquorepositoriesrdquobull = databasesbull = tablesbull = listsbull = filing drawers folders
bull real world items that require description and managementbull
bull + the numerical computations workflow and other activities that are executed with the numbers (and text) stored in these repositories
bull ALL of which can be done by human beings -- including making a messbull
What is an ERP IBISA filing cabinet
51
IBIS ndash what every company REALLY has
Etc etc etc
Custom-ization
In-house custom development
Industry specific package
Brandname ERP = FRED
Spreadsheets
Data warehouse and BI
52
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
53
bull Stalled ERP implementation
bull CEO bought into ldquoERP as a strategic resourcerdquo based on my approach
bull Highly structured strategic Product Class taxonomy
bull Clever software to add products and maintain high quality master data
bull Projects module
bull Brand Management expense taxonomy
bull Clever software to create a project for every brand line with these expense heads
bull Direct integration with General Ledger
bull Comprehensive Brand Project Management and reporting to Principals in Europe
bull New account increased turnover significantly because could do something competitors could NOT do
Dramatic improvements in competitiveness growth and profitability are the ONLY valid arbiters of the success of an ERP implementation or a strategic plan
Case Study Strategic Engineered Precision Configuration WITH Clever Customization to support the ESSENCE
Data engineering
Data engineering principlesCase study
1 ERP Dramatic increase in management information
2 Reduction in head count
3 Dramatic reduction in audit time and cost
4 Unqualified balance sheet first time in 15 years
5 Presented with the client at a public conference
1 Strategic ndash Essence of the Business and how it thrives
2 Engineered ndash rigorous systematic comprehensively tried and tested methods standard conventions expert practitioners etc
3 Precision ndash exact carefully design meticulously fashioned
4 Taxonomies ndash hierarchical information classifications ordering and organizing business information
5 Coupled to precision code schemes which adhere to a number of very specific coding rules and conventions
6 A total solution
Founded on Strategic Engineered Precision Taxonomies (SEPTcopy)
57
Define Strategic Engineered Precision Configuration
bull Configuring the ERP so that it PRECISELY models the real worldbull The goal is that any executive manager supervisor or operator
can look at the configuration and say ldquoYES this IS my businessrdquobull Founded on master data taxonomies ndash structured semantic
contentbull Coupled to custom business specific attributesbull Supplemented by highly structured record level configurationbull Supporting small pieces of clever custom development that add
huge value and create huge strategic and operational opportunities
An ERP is a huge precision data processing factory
Feed it precision data
58
Conventional taxonomy example
ANIMALSELEPHANTSRHINOCEROSDOGSCATS
LIONSLEOPARDSDOMESTIC CATS
Persian CatsDomestic Short Hair Catsetc
59
Taxonomy defined
1 Logical word (semantic structure)
2 Precision vocabulary of preferred terms
3 Conveys understanding between humans with relevant knowledge and experience
4 Once linked to a precision code scheme the most important communication mechanism between computers and people
5 An art and a science
6 Once it is right it is OBVIOUS
Taxonomy example
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
61
Taxonomy relevance
1 Essential to effective operational and strategic use of business software
2 Nearly ALL validation lists (drop down lists) chart of accounts etc
3 Large body of expertise ndash Botany Zoology military filing Library Science Information Management etc
4 Unknown to many (most) IT professionals and business people
62
A computer isAn adding machine calculator
011+1=101+1+1=111+1+1+1=100
Called a ldquobitrdquo
8 bits make a byte
2 bytes make an ASCII character
A= ldquo41rdquo hex
0 1
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
37
There IS great opportunityERP can and should add value
38
Key principles of executive level strategic decision making
1 85 of the basis of executive decision making is soft and tacit information
2 Skim ndash headlines
3 Maximum focus at the start of a report ndash the first page
4 8020 ndash Pareto ndash the Critical Key issues
5 Fast
6 Decisive
7 Right more than wrong
8 High value
9 Intuitive
Critical principle ndash constraint and opportunity -- cognitive span
Drill downA function of the content
41
Personnel Strategically Aligned Key Performance Indicators (KPIrsquos)
Tell me how you want me to behave and I will tell you HOW to measure me
Tell me how you are going to measure me and I will tell you how I am going to behave
Turn it around
Some key considerations with regard to decision making
43
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
Pulse Measurement
1 Concise diagnostic intervention ndash 1 to 10 days
2 Starts with executive interviews ndash understand the Essence of the Business and how it Thrives and Critical Concerns
3 Drill down to systems
4 +- 7 bullet point findings weighted
5 +- 7 recommended actions weighted
6 Findings frequently so obvious and so practical client can continue unaided
7 Strategic advisory and or project leadership to implement recommendations
Analysis of consolidated findings
httpswwwdropboxcomshvfkrz5p5yliwwaryV7SrD6kSh
46
30
1916
14
126 3
1 Mythology hype amp tradition -- 30
2 Lack of executive custody inap-propriate governance and policies -- 19
3 Lack of strategic architecture alignment etc -- 16
4 Lack of data engineering and poor configuration -- 14
5 Soft issues and change impacts -- 12
6 Lack of an engineering approach lack of precision etc -- 6
7 Technology issues -- 3
Factors causing ERP failure
47
22
20
19
17
14
6 2
1Executive custody strategic solution architect accountability -- 22
2 Effective change facilitation -- 20
3 Strategic architecture alignment etc -- 19
4 Data engineering and configuration -- 17
5 Engineering approach design against failure precision etc -- 14
6 Business integration training processes CBT --6
7 Technology -- 2
Factors for ERP reimplementation success
The value of technology is determined by the person using the technology
49
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
bull ldquoEnterprise Resource Planningrdquo = ERP Systemsbull or bull Integrated Business Information Systemsrdquo = IBIS
bull = ALL the information ldquorepositoriesrdquobull = databasesbull = tablesbull = listsbull = filing drawers folders
bull real world items that require description and managementbull
bull + the numerical computations workflow and other activities that are executed with the numbers (and text) stored in these repositories
bull ALL of which can be done by human beings -- including making a messbull
What is an ERP IBISA filing cabinet
51
IBIS ndash what every company REALLY has
Etc etc etc
Custom-ization
In-house custom development
Industry specific package
Brandname ERP = FRED
Spreadsheets
Data warehouse and BI
52
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
53
bull Stalled ERP implementation
bull CEO bought into ldquoERP as a strategic resourcerdquo based on my approach
bull Highly structured strategic Product Class taxonomy
bull Clever software to add products and maintain high quality master data
bull Projects module
bull Brand Management expense taxonomy
bull Clever software to create a project for every brand line with these expense heads
bull Direct integration with General Ledger
bull Comprehensive Brand Project Management and reporting to Principals in Europe
bull New account increased turnover significantly because could do something competitors could NOT do
Dramatic improvements in competitiveness growth and profitability are the ONLY valid arbiters of the success of an ERP implementation or a strategic plan
Case Study Strategic Engineered Precision Configuration WITH Clever Customization to support the ESSENCE
Data engineering
Data engineering principlesCase study
1 ERP Dramatic increase in management information
2 Reduction in head count
3 Dramatic reduction in audit time and cost
4 Unqualified balance sheet first time in 15 years
5 Presented with the client at a public conference
1 Strategic ndash Essence of the Business and how it thrives
2 Engineered ndash rigorous systematic comprehensively tried and tested methods standard conventions expert practitioners etc
3 Precision ndash exact carefully design meticulously fashioned
4 Taxonomies ndash hierarchical information classifications ordering and organizing business information
5 Coupled to precision code schemes which adhere to a number of very specific coding rules and conventions
6 A total solution
Founded on Strategic Engineered Precision Taxonomies (SEPTcopy)
57
Define Strategic Engineered Precision Configuration
bull Configuring the ERP so that it PRECISELY models the real worldbull The goal is that any executive manager supervisor or operator
can look at the configuration and say ldquoYES this IS my businessrdquobull Founded on master data taxonomies ndash structured semantic
contentbull Coupled to custom business specific attributesbull Supplemented by highly structured record level configurationbull Supporting small pieces of clever custom development that add
huge value and create huge strategic and operational opportunities
An ERP is a huge precision data processing factory
Feed it precision data
58
Conventional taxonomy example
ANIMALSELEPHANTSRHINOCEROSDOGSCATS
LIONSLEOPARDSDOMESTIC CATS
Persian CatsDomestic Short Hair Catsetc
59
Taxonomy defined
1 Logical word (semantic structure)
2 Precision vocabulary of preferred terms
3 Conveys understanding between humans with relevant knowledge and experience
4 Once linked to a precision code scheme the most important communication mechanism between computers and people
5 An art and a science
6 Once it is right it is OBVIOUS
Taxonomy example
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
61
Taxonomy relevance
1 Essential to effective operational and strategic use of business software
2 Nearly ALL validation lists (drop down lists) chart of accounts etc
3 Large body of expertise ndash Botany Zoology military filing Library Science Information Management etc
4 Unknown to many (most) IT professionals and business people
62
A computer isAn adding machine calculator
011+1=101+1+1=111+1+1+1=100
Called a ldquobitrdquo
8 bits make a byte
2 bytes make an ASCII character
A= ldquo41rdquo hex
0 1
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
38
Key principles of executive level strategic decision making
1 85 of the basis of executive decision making is soft and tacit information
2 Skim ndash headlines
3 Maximum focus at the start of a report ndash the first page
4 8020 ndash Pareto ndash the Critical Key issues
5 Fast
6 Decisive
7 Right more than wrong
8 High value
9 Intuitive
Critical principle ndash constraint and opportunity -- cognitive span
Drill downA function of the content
41
Personnel Strategically Aligned Key Performance Indicators (KPIrsquos)
Tell me how you want me to behave and I will tell you HOW to measure me
Tell me how you are going to measure me and I will tell you how I am going to behave
Turn it around
Some key considerations with regard to decision making
43
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
Pulse Measurement
1 Concise diagnostic intervention ndash 1 to 10 days
2 Starts with executive interviews ndash understand the Essence of the Business and how it Thrives and Critical Concerns
3 Drill down to systems
4 +- 7 bullet point findings weighted
5 +- 7 recommended actions weighted
6 Findings frequently so obvious and so practical client can continue unaided
7 Strategic advisory and or project leadership to implement recommendations
Analysis of consolidated findings
httpswwwdropboxcomshvfkrz5p5yliwwaryV7SrD6kSh
46
30
1916
14
126 3
1 Mythology hype amp tradition -- 30
2 Lack of executive custody inap-propriate governance and policies -- 19
3 Lack of strategic architecture alignment etc -- 16
4 Lack of data engineering and poor configuration -- 14
5 Soft issues and change impacts -- 12
6 Lack of an engineering approach lack of precision etc -- 6
7 Technology issues -- 3
Factors causing ERP failure
47
22
20
19
17
14
6 2
1Executive custody strategic solution architect accountability -- 22
2 Effective change facilitation -- 20
3 Strategic architecture alignment etc -- 19
4 Data engineering and configuration -- 17
5 Engineering approach design against failure precision etc -- 14
6 Business integration training processes CBT --6
7 Technology -- 2
Factors for ERP reimplementation success
The value of technology is determined by the person using the technology
49
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
bull ldquoEnterprise Resource Planningrdquo = ERP Systemsbull or bull Integrated Business Information Systemsrdquo = IBIS
bull = ALL the information ldquorepositoriesrdquobull = databasesbull = tablesbull = listsbull = filing drawers folders
bull real world items that require description and managementbull
bull + the numerical computations workflow and other activities that are executed with the numbers (and text) stored in these repositories
bull ALL of which can be done by human beings -- including making a messbull
What is an ERP IBISA filing cabinet
51
IBIS ndash what every company REALLY has
Etc etc etc
Custom-ization
In-house custom development
Industry specific package
Brandname ERP = FRED
Spreadsheets
Data warehouse and BI
52
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
53
bull Stalled ERP implementation
bull CEO bought into ldquoERP as a strategic resourcerdquo based on my approach
bull Highly structured strategic Product Class taxonomy
bull Clever software to add products and maintain high quality master data
bull Projects module
bull Brand Management expense taxonomy
bull Clever software to create a project for every brand line with these expense heads
bull Direct integration with General Ledger
bull Comprehensive Brand Project Management and reporting to Principals in Europe
bull New account increased turnover significantly because could do something competitors could NOT do
Dramatic improvements in competitiveness growth and profitability are the ONLY valid arbiters of the success of an ERP implementation or a strategic plan
Case Study Strategic Engineered Precision Configuration WITH Clever Customization to support the ESSENCE
Data engineering
Data engineering principlesCase study
1 ERP Dramatic increase in management information
2 Reduction in head count
3 Dramatic reduction in audit time and cost
4 Unqualified balance sheet first time in 15 years
5 Presented with the client at a public conference
1 Strategic ndash Essence of the Business and how it thrives
2 Engineered ndash rigorous systematic comprehensively tried and tested methods standard conventions expert practitioners etc
3 Precision ndash exact carefully design meticulously fashioned
4 Taxonomies ndash hierarchical information classifications ordering and organizing business information
5 Coupled to precision code schemes which adhere to a number of very specific coding rules and conventions
6 A total solution
Founded on Strategic Engineered Precision Taxonomies (SEPTcopy)
57
Define Strategic Engineered Precision Configuration
bull Configuring the ERP so that it PRECISELY models the real worldbull The goal is that any executive manager supervisor or operator
can look at the configuration and say ldquoYES this IS my businessrdquobull Founded on master data taxonomies ndash structured semantic
contentbull Coupled to custom business specific attributesbull Supplemented by highly structured record level configurationbull Supporting small pieces of clever custom development that add
huge value and create huge strategic and operational opportunities
An ERP is a huge precision data processing factory
Feed it precision data
58
Conventional taxonomy example
ANIMALSELEPHANTSRHINOCEROSDOGSCATS
LIONSLEOPARDSDOMESTIC CATS
Persian CatsDomestic Short Hair Catsetc
59
Taxonomy defined
1 Logical word (semantic structure)
2 Precision vocabulary of preferred terms
3 Conveys understanding between humans with relevant knowledge and experience
4 Once linked to a precision code scheme the most important communication mechanism between computers and people
5 An art and a science
6 Once it is right it is OBVIOUS
Taxonomy example
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
61
Taxonomy relevance
1 Essential to effective operational and strategic use of business software
2 Nearly ALL validation lists (drop down lists) chart of accounts etc
3 Large body of expertise ndash Botany Zoology military filing Library Science Information Management etc
4 Unknown to many (most) IT professionals and business people
62
A computer isAn adding machine calculator
011+1=101+1+1=111+1+1+1=100
Called a ldquobitrdquo
8 bits make a byte
2 bytes make an ASCII character
A= ldquo41rdquo hex
0 1
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
Critical principle ndash constraint and opportunity -- cognitive span
Drill downA function of the content
41
Personnel Strategically Aligned Key Performance Indicators (KPIrsquos)
Tell me how you want me to behave and I will tell you HOW to measure me
Tell me how you are going to measure me and I will tell you how I am going to behave
Turn it around
Some key considerations with regard to decision making
43
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
Pulse Measurement
1 Concise diagnostic intervention ndash 1 to 10 days
2 Starts with executive interviews ndash understand the Essence of the Business and how it Thrives and Critical Concerns
3 Drill down to systems
4 +- 7 bullet point findings weighted
5 +- 7 recommended actions weighted
6 Findings frequently so obvious and so practical client can continue unaided
7 Strategic advisory and or project leadership to implement recommendations
Analysis of consolidated findings
httpswwwdropboxcomshvfkrz5p5yliwwaryV7SrD6kSh
46
30
1916
14
126 3
1 Mythology hype amp tradition -- 30
2 Lack of executive custody inap-propriate governance and policies -- 19
3 Lack of strategic architecture alignment etc -- 16
4 Lack of data engineering and poor configuration -- 14
5 Soft issues and change impacts -- 12
6 Lack of an engineering approach lack of precision etc -- 6
7 Technology issues -- 3
Factors causing ERP failure
47
22
20
19
17
14
6 2
1Executive custody strategic solution architect accountability -- 22
2 Effective change facilitation -- 20
3 Strategic architecture alignment etc -- 19
4 Data engineering and configuration -- 17
5 Engineering approach design against failure precision etc -- 14
6 Business integration training processes CBT --6
7 Technology -- 2
Factors for ERP reimplementation success
The value of technology is determined by the person using the technology
49
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
bull ldquoEnterprise Resource Planningrdquo = ERP Systemsbull or bull Integrated Business Information Systemsrdquo = IBIS
bull = ALL the information ldquorepositoriesrdquobull = databasesbull = tablesbull = listsbull = filing drawers folders
bull real world items that require description and managementbull
bull + the numerical computations workflow and other activities that are executed with the numbers (and text) stored in these repositories
bull ALL of which can be done by human beings -- including making a messbull
What is an ERP IBISA filing cabinet
51
IBIS ndash what every company REALLY has
Etc etc etc
Custom-ization
In-house custom development
Industry specific package
Brandname ERP = FRED
Spreadsheets
Data warehouse and BI
52
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
53
bull Stalled ERP implementation
bull CEO bought into ldquoERP as a strategic resourcerdquo based on my approach
bull Highly structured strategic Product Class taxonomy
bull Clever software to add products and maintain high quality master data
bull Projects module
bull Brand Management expense taxonomy
bull Clever software to create a project for every brand line with these expense heads
bull Direct integration with General Ledger
bull Comprehensive Brand Project Management and reporting to Principals in Europe
bull New account increased turnover significantly because could do something competitors could NOT do
Dramatic improvements in competitiveness growth and profitability are the ONLY valid arbiters of the success of an ERP implementation or a strategic plan
Case Study Strategic Engineered Precision Configuration WITH Clever Customization to support the ESSENCE
Data engineering
Data engineering principlesCase study
1 ERP Dramatic increase in management information
2 Reduction in head count
3 Dramatic reduction in audit time and cost
4 Unqualified balance sheet first time in 15 years
5 Presented with the client at a public conference
1 Strategic ndash Essence of the Business and how it thrives
2 Engineered ndash rigorous systematic comprehensively tried and tested methods standard conventions expert practitioners etc
3 Precision ndash exact carefully design meticulously fashioned
4 Taxonomies ndash hierarchical information classifications ordering and organizing business information
5 Coupled to precision code schemes which adhere to a number of very specific coding rules and conventions
6 A total solution
Founded on Strategic Engineered Precision Taxonomies (SEPTcopy)
57
Define Strategic Engineered Precision Configuration
bull Configuring the ERP so that it PRECISELY models the real worldbull The goal is that any executive manager supervisor or operator
can look at the configuration and say ldquoYES this IS my businessrdquobull Founded on master data taxonomies ndash structured semantic
contentbull Coupled to custom business specific attributesbull Supplemented by highly structured record level configurationbull Supporting small pieces of clever custom development that add
huge value and create huge strategic and operational opportunities
An ERP is a huge precision data processing factory
Feed it precision data
58
Conventional taxonomy example
ANIMALSELEPHANTSRHINOCEROSDOGSCATS
LIONSLEOPARDSDOMESTIC CATS
Persian CatsDomestic Short Hair Catsetc
59
Taxonomy defined
1 Logical word (semantic structure)
2 Precision vocabulary of preferred terms
3 Conveys understanding between humans with relevant knowledge and experience
4 Once linked to a precision code scheme the most important communication mechanism between computers and people
5 An art and a science
6 Once it is right it is OBVIOUS
Taxonomy example
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
61
Taxonomy relevance
1 Essential to effective operational and strategic use of business software
2 Nearly ALL validation lists (drop down lists) chart of accounts etc
3 Large body of expertise ndash Botany Zoology military filing Library Science Information Management etc
4 Unknown to many (most) IT professionals and business people
62
A computer isAn adding machine calculator
011+1=101+1+1=111+1+1+1=100
Called a ldquobitrdquo
8 bits make a byte
2 bytes make an ASCII character
A= ldquo41rdquo hex
0 1
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
Drill downA function of the content
41
Personnel Strategically Aligned Key Performance Indicators (KPIrsquos)
Tell me how you want me to behave and I will tell you HOW to measure me
Tell me how you are going to measure me and I will tell you how I am going to behave
Turn it around
Some key considerations with regard to decision making
43
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
Pulse Measurement
1 Concise diagnostic intervention ndash 1 to 10 days
2 Starts with executive interviews ndash understand the Essence of the Business and how it Thrives and Critical Concerns
3 Drill down to systems
4 +- 7 bullet point findings weighted
5 +- 7 recommended actions weighted
6 Findings frequently so obvious and so practical client can continue unaided
7 Strategic advisory and or project leadership to implement recommendations
Analysis of consolidated findings
httpswwwdropboxcomshvfkrz5p5yliwwaryV7SrD6kSh
46
30
1916
14
126 3
1 Mythology hype amp tradition -- 30
2 Lack of executive custody inap-propriate governance and policies -- 19
3 Lack of strategic architecture alignment etc -- 16
4 Lack of data engineering and poor configuration -- 14
5 Soft issues and change impacts -- 12
6 Lack of an engineering approach lack of precision etc -- 6
7 Technology issues -- 3
Factors causing ERP failure
47
22
20
19
17
14
6 2
1Executive custody strategic solution architect accountability -- 22
2 Effective change facilitation -- 20
3 Strategic architecture alignment etc -- 19
4 Data engineering and configuration -- 17
5 Engineering approach design against failure precision etc -- 14
6 Business integration training processes CBT --6
7 Technology -- 2
Factors for ERP reimplementation success
The value of technology is determined by the person using the technology
49
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
bull ldquoEnterprise Resource Planningrdquo = ERP Systemsbull or bull Integrated Business Information Systemsrdquo = IBIS
bull = ALL the information ldquorepositoriesrdquobull = databasesbull = tablesbull = listsbull = filing drawers folders
bull real world items that require description and managementbull
bull + the numerical computations workflow and other activities that are executed with the numbers (and text) stored in these repositories
bull ALL of which can be done by human beings -- including making a messbull
What is an ERP IBISA filing cabinet
51
IBIS ndash what every company REALLY has
Etc etc etc
Custom-ization
In-house custom development
Industry specific package
Brandname ERP = FRED
Spreadsheets
Data warehouse and BI
52
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
53
bull Stalled ERP implementation
bull CEO bought into ldquoERP as a strategic resourcerdquo based on my approach
bull Highly structured strategic Product Class taxonomy
bull Clever software to add products and maintain high quality master data
bull Projects module
bull Brand Management expense taxonomy
bull Clever software to create a project for every brand line with these expense heads
bull Direct integration with General Ledger
bull Comprehensive Brand Project Management and reporting to Principals in Europe
bull New account increased turnover significantly because could do something competitors could NOT do
Dramatic improvements in competitiveness growth and profitability are the ONLY valid arbiters of the success of an ERP implementation or a strategic plan
Case Study Strategic Engineered Precision Configuration WITH Clever Customization to support the ESSENCE
Data engineering
Data engineering principlesCase study
1 ERP Dramatic increase in management information
2 Reduction in head count
3 Dramatic reduction in audit time and cost
4 Unqualified balance sheet first time in 15 years
5 Presented with the client at a public conference
1 Strategic ndash Essence of the Business and how it thrives
2 Engineered ndash rigorous systematic comprehensively tried and tested methods standard conventions expert practitioners etc
3 Precision ndash exact carefully design meticulously fashioned
4 Taxonomies ndash hierarchical information classifications ordering and organizing business information
5 Coupled to precision code schemes which adhere to a number of very specific coding rules and conventions
6 A total solution
Founded on Strategic Engineered Precision Taxonomies (SEPTcopy)
57
Define Strategic Engineered Precision Configuration
bull Configuring the ERP so that it PRECISELY models the real worldbull The goal is that any executive manager supervisor or operator
can look at the configuration and say ldquoYES this IS my businessrdquobull Founded on master data taxonomies ndash structured semantic
contentbull Coupled to custom business specific attributesbull Supplemented by highly structured record level configurationbull Supporting small pieces of clever custom development that add
huge value and create huge strategic and operational opportunities
An ERP is a huge precision data processing factory
Feed it precision data
58
Conventional taxonomy example
ANIMALSELEPHANTSRHINOCEROSDOGSCATS
LIONSLEOPARDSDOMESTIC CATS
Persian CatsDomestic Short Hair Catsetc
59
Taxonomy defined
1 Logical word (semantic structure)
2 Precision vocabulary of preferred terms
3 Conveys understanding between humans with relevant knowledge and experience
4 Once linked to a precision code scheme the most important communication mechanism between computers and people
5 An art and a science
6 Once it is right it is OBVIOUS
Taxonomy example
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
61
Taxonomy relevance
1 Essential to effective operational and strategic use of business software
2 Nearly ALL validation lists (drop down lists) chart of accounts etc
3 Large body of expertise ndash Botany Zoology military filing Library Science Information Management etc
4 Unknown to many (most) IT professionals and business people
62
A computer isAn adding machine calculator
011+1=101+1+1=111+1+1+1=100
Called a ldquobitrdquo
8 bits make a byte
2 bytes make an ASCII character
A= ldquo41rdquo hex
0 1
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
41
Personnel Strategically Aligned Key Performance Indicators (KPIrsquos)
Tell me how you want me to behave and I will tell you HOW to measure me
Tell me how you are going to measure me and I will tell you how I am going to behave
Turn it around
Some key considerations with regard to decision making
43
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
Pulse Measurement
1 Concise diagnostic intervention ndash 1 to 10 days
2 Starts with executive interviews ndash understand the Essence of the Business and how it Thrives and Critical Concerns
3 Drill down to systems
4 +- 7 bullet point findings weighted
5 +- 7 recommended actions weighted
6 Findings frequently so obvious and so practical client can continue unaided
7 Strategic advisory and or project leadership to implement recommendations
Analysis of consolidated findings
httpswwwdropboxcomshvfkrz5p5yliwwaryV7SrD6kSh
46
30
1916
14
126 3
1 Mythology hype amp tradition -- 30
2 Lack of executive custody inap-propriate governance and policies -- 19
3 Lack of strategic architecture alignment etc -- 16
4 Lack of data engineering and poor configuration -- 14
5 Soft issues and change impacts -- 12
6 Lack of an engineering approach lack of precision etc -- 6
7 Technology issues -- 3
Factors causing ERP failure
47
22
20
19
17
14
6 2
1Executive custody strategic solution architect accountability -- 22
2 Effective change facilitation -- 20
3 Strategic architecture alignment etc -- 19
4 Data engineering and configuration -- 17
5 Engineering approach design against failure precision etc -- 14
6 Business integration training processes CBT --6
7 Technology -- 2
Factors for ERP reimplementation success
The value of technology is determined by the person using the technology
49
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
bull ldquoEnterprise Resource Planningrdquo = ERP Systemsbull or bull Integrated Business Information Systemsrdquo = IBIS
bull = ALL the information ldquorepositoriesrdquobull = databasesbull = tablesbull = listsbull = filing drawers folders
bull real world items that require description and managementbull
bull + the numerical computations workflow and other activities that are executed with the numbers (and text) stored in these repositories
bull ALL of which can be done by human beings -- including making a messbull
What is an ERP IBISA filing cabinet
51
IBIS ndash what every company REALLY has
Etc etc etc
Custom-ization
In-house custom development
Industry specific package
Brandname ERP = FRED
Spreadsheets
Data warehouse and BI
52
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
53
bull Stalled ERP implementation
bull CEO bought into ldquoERP as a strategic resourcerdquo based on my approach
bull Highly structured strategic Product Class taxonomy
bull Clever software to add products and maintain high quality master data
bull Projects module
bull Brand Management expense taxonomy
bull Clever software to create a project for every brand line with these expense heads
bull Direct integration with General Ledger
bull Comprehensive Brand Project Management and reporting to Principals in Europe
bull New account increased turnover significantly because could do something competitors could NOT do
Dramatic improvements in competitiveness growth and profitability are the ONLY valid arbiters of the success of an ERP implementation or a strategic plan
Case Study Strategic Engineered Precision Configuration WITH Clever Customization to support the ESSENCE
Data engineering
Data engineering principlesCase study
1 ERP Dramatic increase in management information
2 Reduction in head count
3 Dramatic reduction in audit time and cost
4 Unqualified balance sheet first time in 15 years
5 Presented with the client at a public conference
1 Strategic ndash Essence of the Business and how it thrives
2 Engineered ndash rigorous systematic comprehensively tried and tested methods standard conventions expert practitioners etc
3 Precision ndash exact carefully design meticulously fashioned
4 Taxonomies ndash hierarchical information classifications ordering and organizing business information
5 Coupled to precision code schemes which adhere to a number of very specific coding rules and conventions
6 A total solution
Founded on Strategic Engineered Precision Taxonomies (SEPTcopy)
57
Define Strategic Engineered Precision Configuration
bull Configuring the ERP so that it PRECISELY models the real worldbull The goal is that any executive manager supervisor or operator
can look at the configuration and say ldquoYES this IS my businessrdquobull Founded on master data taxonomies ndash structured semantic
contentbull Coupled to custom business specific attributesbull Supplemented by highly structured record level configurationbull Supporting small pieces of clever custom development that add
huge value and create huge strategic and operational opportunities
An ERP is a huge precision data processing factory
Feed it precision data
58
Conventional taxonomy example
ANIMALSELEPHANTSRHINOCEROSDOGSCATS
LIONSLEOPARDSDOMESTIC CATS
Persian CatsDomestic Short Hair Catsetc
59
Taxonomy defined
1 Logical word (semantic structure)
2 Precision vocabulary of preferred terms
3 Conveys understanding between humans with relevant knowledge and experience
4 Once linked to a precision code scheme the most important communication mechanism between computers and people
5 An art and a science
6 Once it is right it is OBVIOUS
Taxonomy example
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
61
Taxonomy relevance
1 Essential to effective operational and strategic use of business software
2 Nearly ALL validation lists (drop down lists) chart of accounts etc
3 Large body of expertise ndash Botany Zoology military filing Library Science Information Management etc
4 Unknown to many (most) IT professionals and business people
62
A computer isAn adding machine calculator
011+1=101+1+1=111+1+1+1=100
Called a ldquobitrdquo
8 bits make a byte
2 bytes make an ASCII character
A= ldquo41rdquo hex
0 1
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
Some key considerations with regard to decision making
43
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
Pulse Measurement
1 Concise diagnostic intervention ndash 1 to 10 days
2 Starts with executive interviews ndash understand the Essence of the Business and how it Thrives and Critical Concerns
3 Drill down to systems
4 +- 7 bullet point findings weighted
5 +- 7 recommended actions weighted
6 Findings frequently so obvious and so practical client can continue unaided
7 Strategic advisory and or project leadership to implement recommendations
Analysis of consolidated findings
httpswwwdropboxcomshvfkrz5p5yliwwaryV7SrD6kSh
46
30
1916
14
126 3
1 Mythology hype amp tradition -- 30
2 Lack of executive custody inap-propriate governance and policies -- 19
3 Lack of strategic architecture alignment etc -- 16
4 Lack of data engineering and poor configuration -- 14
5 Soft issues and change impacts -- 12
6 Lack of an engineering approach lack of precision etc -- 6
7 Technology issues -- 3
Factors causing ERP failure
47
22
20
19
17
14
6 2
1Executive custody strategic solution architect accountability -- 22
2 Effective change facilitation -- 20
3 Strategic architecture alignment etc -- 19
4 Data engineering and configuration -- 17
5 Engineering approach design against failure precision etc -- 14
6 Business integration training processes CBT --6
7 Technology -- 2
Factors for ERP reimplementation success
The value of technology is determined by the person using the technology
49
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
bull ldquoEnterprise Resource Planningrdquo = ERP Systemsbull or bull Integrated Business Information Systemsrdquo = IBIS
bull = ALL the information ldquorepositoriesrdquobull = databasesbull = tablesbull = listsbull = filing drawers folders
bull real world items that require description and managementbull
bull + the numerical computations workflow and other activities that are executed with the numbers (and text) stored in these repositories
bull ALL of which can be done by human beings -- including making a messbull
What is an ERP IBISA filing cabinet
51
IBIS ndash what every company REALLY has
Etc etc etc
Custom-ization
In-house custom development
Industry specific package
Brandname ERP = FRED
Spreadsheets
Data warehouse and BI
52
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
53
bull Stalled ERP implementation
bull CEO bought into ldquoERP as a strategic resourcerdquo based on my approach
bull Highly structured strategic Product Class taxonomy
bull Clever software to add products and maintain high quality master data
bull Projects module
bull Brand Management expense taxonomy
bull Clever software to create a project for every brand line with these expense heads
bull Direct integration with General Ledger
bull Comprehensive Brand Project Management and reporting to Principals in Europe
bull New account increased turnover significantly because could do something competitors could NOT do
Dramatic improvements in competitiveness growth and profitability are the ONLY valid arbiters of the success of an ERP implementation or a strategic plan
Case Study Strategic Engineered Precision Configuration WITH Clever Customization to support the ESSENCE
Data engineering
Data engineering principlesCase study
1 ERP Dramatic increase in management information
2 Reduction in head count
3 Dramatic reduction in audit time and cost
4 Unqualified balance sheet first time in 15 years
5 Presented with the client at a public conference
1 Strategic ndash Essence of the Business and how it thrives
2 Engineered ndash rigorous systematic comprehensively tried and tested methods standard conventions expert practitioners etc
3 Precision ndash exact carefully design meticulously fashioned
4 Taxonomies ndash hierarchical information classifications ordering and organizing business information
5 Coupled to precision code schemes which adhere to a number of very specific coding rules and conventions
6 A total solution
Founded on Strategic Engineered Precision Taxonomies (SEPTcopy)
57
Define Strategic Engineered Precision Configuration
bull Configuring the ERP so that it PRECISELY models the real worldbull The goal is that any executive manager supervisor or operator
can look at the configuration and say ldquoYES this IS my businessrdquobull Founded on master data taxonomies ndash structured semantic
contentbull Coupled to custom business specific attributesbull Supplemented by highly structured record level configurationbull Supporting small pieces of clever custom development that add
huge value and create huge strategic and operational opportunities
An ERP is a huge precision data processing factory
Feed it precision data
58
Conventional taxonomy example
ANIMALSELEPHANTSRHINOCEROSDOGSCATS
LIONSLEOPARDSDOMESTIC CATS
Persian CatsDomestic Short Hair Catsetc
59
Taxonomy defined
1 Logical word (semantic structure)
2 Precision vocabulary of preferred terms
3 Conveys understanding between humans with relevant knowledge and experience
4 Once linked to a precision code scheme the most important communication mechanism between computers and people
5 An art and a science
6 Once it is right it is OBVIOUS
Taxonomy example
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
61
Taxonomy relevance
1 Essential to effective operational and strategic use of business software
2 Nearly ALL validation lists (drop down lists) chart of accounts etc
3 Large body of expertise ndash Botany Zoology military filing Library Science Information Management etc
4 Unknown to many (most) IT professionals and business people
62
A computer isAn adding machine calculator
011+1=101+1+1=111+1+1+1=100
Called a ldquobitrdquo
8 bits make a byte
2 bytes make an ASCII character
A= ldquo41rdquo hex
0 1
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
43
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
Pulse Measurement
1 Concise diagnostic intervention ndash 1 to 10 days
2 Starts with executive interviews ndash understand the Essence of the Business and how it Thrives and Critical Concerns
3 Drill down to systems
4 +- 7 bullet point findings weighted
5 +- 7 recommended actions weighted
6 Findings frequently so obvious and so practical client can continue unaided
7 Strategic advisory and or project leadership to implement recommendations
Analysis of consolidated findings
httpswwwdropboxcomshvfkrz5p5yliwwaryV7SrD6kSh
46
30
1916
14
126 3
1 Mythology hype amp tradition -- 30
2 Lack of executive custody inap-propriate governance and policies -- 19
3 Lack of strategic architecture alignment etc -- 16
4 Lack of data engineering and poor configuration -- 14
5 Soft issues and change impacts -- 12
6 Lack of an engineering approach lack of precision etc -- 6
7 Technology issues -- 3
Factors causing ERP failure
47
22
20
19
17
14
6 2
1Executive custody strategic solution architect accountability -- 22
2 Effective change facilitation -- 20
3 Strategic architecture alignment etc -- 19
4 Data engineering and configuration -- 17
5 Engineering approach design against failure precision etc -- 14
6 Business integration training processes CBT --6
7 Technology -- 2
Factors for ERP reimplementation success
The value of technology is determined by the person using the technology
49
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
bull ldquoEnterprise Resource Planningrdquo = ERP Systemsbull or bull Integrated Business Information Systemsrdquo = IBIS
bull = ALL the information ldquorepositoriesrdquobull = databasesbull = tablesbull = listsbull = filing drawers folders
bull real world items that require description and managementbull
bull + the numerical computations workflow and other activities that are executed with the numbers (and text) stored in these repositories
bull ALL of which can be done by human beings -- including making a messbull
What is an ERP IBISA filing cabinet
51
IBIS ndash what every company REALLY has
Etc etc etc
Custom-ization
In-house custom development
Industry specific package
Brandname ERP = FRED
Spreadsheets
Data warehouse and BI
52
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
53
bull Stalled ERP implementation
bull CEO bought into ldquoERP as a strategic resourcerdquo based on my approach
bull Highly structured strategic Product Class taxonomy
bull Clever software to add products and maintain high quality master data
bull Projects module
bull Brand Management expense taxonomy
bull Clever software to create a project for every brand line with these expense heads
bull Direct integration with General Ledger
bull Comprehensive Brand Project Management and reporting to Principals in Europe
bull New account increased turnover significantly because could do something competitors could NOT do
Dramatic improvements in competitiveness growth and profitability are the ONLY valid arbiters of the success of an ERP implementation or a strategic plan
Case Study Strategic Engineered Precision Configuration WITH Clever Customization to support the ESSENCE
Data engineering
Data engineering principlesCase study
1 ERP Dramatic increase in management information
2 Reduction in head count
3 Dramatic reduction in audit time and cost
4 Unqualified balance sheet first time in 15 years
5 Presented with the client at a public conference
1 Strategic ndash Essence of the Business and how it thrives
2 Engineered ndash rigorous systematic comprehensively tried and tested methods standard conventions expert practitioners etc
3 Precision ndash exact carefully design meticulously fashioned
4 Taxonomies ndash hierarchical information classifications ordering and organizing business information
5 Coupled to precision code schemes which adhere to a number of very specific coding rules and conventions
6 A total solution
Founded on Strategic Engineered Precision Taxonomies (SEPTcopy)
57
Define Strategic Engineered Precision Configuration
bull Configuring the ERP so that it PRECISELY models the real worldbull The goal is that any executive manager supervisor or operator
can look at the configuration and say ldquoYES this IS my businessrdquobull Founded on master data taxonomies ndash structured semantic
contentbull Coupled to custom business specific attributesbull Supplemented by highly structured record level configurationbull Supporting small pieces of clever custom development that add
huge value and create huge strategic and operational opportunities
An ERP is a huge precision data processing factory
Feed it precision data
58
Conventional taxonomy example
ANIMALSELEPHANTSRHINOCEROSDOGSCATS
LIONSLEOPARDSDOMESTIC CATS
Persian CatsDomestic Short Hair Catsetc
59
Taxonomy defined
1 Logical word (semantic structure)
2 Precision vocabulary of preferred terms
3 Conveys understanding between humans with relevant knowledge and experience
4 Once linked to a precision code scheme the most important communication mechanism between computers and people
5 An art and a science
6 Once it is right it is OBVIOUS
Taxonomy example
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
61
Taxonomy relevance
1 Essential to effective operational and strategic use of business software
2 Nearly ALL validation lists (drop down lists) chart of accounts etc
3 Large body of expertise ndash Botany Zoology military filing Library Science Information Management etc
4 Unknown to many (most) IT professionals and business people
62
A computer isAn adding machine calculator
011+1=101+1+1=111+1+1+1=100
Called a ldquobitrdquo
8 bits make a byte
2 bytes make an ASCII character
A= ldquo41rdquo hex
0 1
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
Pulse Measurement
1 Concise diagnostic intervention ndash 1 to 10 days
2 Starts with executive interviews ndash understand the Essence of the Business and how it Thrives and Critical Concerns
3 Drill down to systems
4 +- 7 bullet point findings weighted
5 +- 7 recommended actions weighted
6 Findings frequently so obvious and so practical client can continue unaided
7 Strategic advisory and or project leadership to implement recommendations
Analysis of consolidated findings
httpswwwdropboxcomshvfkrz5p5yliwwaryV7SrD6kSh
46
30
1916
14
126 3
1 Mythology hype amp tradition -- 30
2 Lack of executive custody inap-propriate governance and policies -- 19
3 Lack of strategic architecture alignment etc -- 16
4 Lack of data engineering and poor configuration -- 14
5 Soft issues and change impacts -- 12
6 Lack of an engineering approach lack of precision etc -- 6
7 Technology issues -- 3
Factors causing ERP failure
47
22
20
19
17
14
6 2
1Executive custody strategic solution architect accountability -- 22
2 Effective change facilitation -- 20
3 Strategic architecture alignment etc -- 19
4 Data engineering and configuration -- 17
5 Engineering approach design against failure precision etc -- 14
6 Business integration training processes CBT --6
7 Technology -- 2
Factors for ERP reimplementation success
The value of technology is determined by the person using the technology
49
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
bull ldquoEnterprise Resource Planningrdquo = ERP Systemsbull or bull Integrated Business Information Systemsrdquo = IBIS
bull = ALL the information ldquorepositoriesrdquobull = databasesbull = tablesbull = listsbull = filing drawers folders
bull real world items that require description and managementbull
bull + the numerical computations workflow and other activities that are executed with the numbers (and text) stored in these repositories
bull ALL of which can be done by human beings -- including making a messbull
What is an ERP IBISA filing cabinet
51
IBIS ndash what every company REALLY has
Etc etc etc
Custom-ization
In-house custom development
Industry specific package
Brandname ERP = FRED
Spreadsheets
Data warehouse and BI
52
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
53
bull Stalled ERP implementation
bull CEO bought into ldquoERP as a strategic resourcerdquo based on my approach
bull Highly structured strategic Product Class taxonomy
bull Clever software to add products and maintain high quality master data
bull Projects module
bull Brand Management expense taxonomy
bull Clever software to create a project for every brand line with these expense heads
bull Direct integration with General Ledger
bull Comprehensive Brand Project Management and reporting to Principals in Europe
bull New account increased turnover significantly because could do something competitors could NOT do
Dramatic improvements in competitiveness growth and profitability are the ONLY valid arbiters of the success of an ERP implementation or a strategic plan
Case Study Strategic Engineered Precision Configuration WITH Clever Customization to support the ESSENCE
Data engineering
Data engineering principlesCase study
1 ERP Dramatic increase in management information
2 Reduction in head count
3 Dramatic reduction in audit time and cost
4 Unqualified balance sheet first time in 15 years
5 Presented with the client at a public conference
1 Strategic ndash Essence of the Business and how it thrives
2 Engineered ndash rigorous systematic comprehensively tried and tested methods standard conventions expert practitioners etc
3 Precision ndash exact carefully design meticulously fashioned
4 Taxonomies ndash hierarchical information classifications ordering and organizing business information
5 Coupled to precision code schemes which adhere to a number of very specific coding rules and conventions
6 A total solution
Founded on Strategic Engineered Precision Taxonomies (SEPTcopy)
57
Define Strategic Engineered Precision Configuration
bull Configuring the ERP so that it PRECISELY models the real worldbull The goal is that any executive manager supervisor or operator
can look at the configuration and say ldquoYES this IS my businessrdquobull Founded on master data taxonomies ndash structured semantic
contentbull Coupled to custom business specific attributesbull Supplemented by highly structured record level configurationbull Supporting small pieces of clever custom development that add
huge value and create huge strategic and operational opportunities
An ERP is a huge precision data processing factory
Feed it precision data
58
Conventional taxonomy example
ANIMALSELEPHANTSRHINOCEROSDOGSCATS
LIONSLEOPARDSDOMESTIC CATS
Persian CatsDomestic Short Hair Catsetc
59
Taxonomy defined
1 Logical word (semantic structure)
2 Precision vocabulary of preferred terms
3 Conveys understanding between humans with relevant knowledge and experience
4 Once linked to a precision code scheme the most important communication mechanism between computers and people
5 An art and a science
6 Once it is right it is OBVIOUS
Taxonomy example
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
61
Taxonomy relevance
1 Essential to effective operational and strategic use of business software
2 Nearly ALL validation lists (drop down lists) chart of accounts etc
3 Large body of expertise ndash Botany Zoology military filing Library Science Information Management etc
4 Unknown to many (most) IT professionals and business people
62
A computer isAn adding machine calculator
011+1=101+1+1=111+1+1+1=100
Called a ldquobitrdquo
8 bits make a byte
2 bytes make an ASCII character
A= ldquo41rdquo hex
0 1
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
Analysis of consolidated findings
httpswwwdropboxcomshvfkrz5p5yliwwaryV7SrD6kSh
46
30
1916
14
126 3
1 Mythology hype amp tradition -- 30
2 Lack of executive custody inap-propriate governance and policies -- 19
3 Lack of strategic architecture alignment etc -- 16
4 Lack of data engineering and poor configuration -- 14
5 Soft issues and change impacts -- 12
6 Lack of an engineering approach lack of precision etc -- 6
7 Technology issues -- 3
Factors causing ERP failure
47
22
20
19
17
14
6 2
1Executive custody strategic solution architect accountability -- 22
2 Effective change facilitation -- 20
3 Strategic architecture alignment etc -- 19
4 Data engineering and configuration -- 17
5 Engineering approach design against failure precision etc -- 14
6 Business integration training processes CBT --6
7 Technology -- 2
Factors for ERP reimplementation success
The value of technology is determined by the person using the technology
49
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
bull ldquoEnterprise Resource Planningrdquo = ERP Systemsbull or bull Integrated Business Information Systemsrdquo = IBIS
bull = ALL the information ldquorepositoriesrdquobull = databasesbull = tablesbull = listsbull = filing drawers folders
bull real world items that require description and managementbull
bull + the numerical computations workflow and other activities that are executed with the numbers (and text) stored in these repositories
bull ALL of which can be done by human beings -- including making a messbull
What is an ERP IBISA filing cabinet
51
IBIS ndash what every company REALLY has
Etc etc etc
Custom-ization
In-house custom development
Industry specific package
Brandname ERP = FRED
Spreadsheets
Data warehouse and BI
52
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
53
bull Stalled ERP implementation
bull CEO bought into ldquoERP as a strategic resourcerdquo based on my approach
bull Highly structured strategic Product Class taxonomy
bull Clever software to add products and maintain high quality master data
bull Projects module
bull Brand Management expense taxonomy
bull Clever software to create a project for every brand line with these expense heads
bull Direct integration with General Ledger
bull Comprehensive Brand Project Management and reporting to Principals in Europe
bull New account increased turnover significantly because could do something competitors could NOT do
Dramatic improvements in competitiveness growth and profitability are the ONLY valid arbiters of the success of an ERP implementation or a strategic plan
Case Study Strategic Engineered Precision Configuration WITH Clever Customization to support the ESSENCE
Data engineering
Data engineering principlesCase study
1 ERP Dramatic increase in management information
2 Reduction in head count
3 Dramatic reduction in audit time and cost
4 Unqualified balance sheet first time in 15 years
5 Presented with the client at a public conference
1 Strategic ndash Essence of the Business and how it thrives
2 Engineered ndash rigorous systematic comprehensively tried and tested methods standard conventions expert practitioners etc
3 Precision ndash exact carefully design meticulously fashioned
4 Taxonomies ndash hierarchical information classifications ordering and organizing business information
5 Coupled to precision code schemes which adhere to a number of very specific coding rules and conventions
6 A total solution
Founded on Strategic Engineered Precision Taxonomies (SEPTcopy)
57
Define Strategic Engineered Precision Configuration
bull Configuring the ERP so that it PRECISELY models the real worldbull The goal is that any executive manager supervisor or operator
can look at the configuration and say ldquoYES this IS my businessrdquobull Founded on master data taxonomies ndash structured semantic
contentbull Coupled to custom business specific attributesbull Supplemented by highly structured record level configurationbull Supporting small pieces of clever custom development that add
huge value and create huge strategic and operational opportunities
An ERP is a huge precision data processing factory
Feed it precision data
58
Conventional taxonomy example
ANIMALSELEPHANTSRHINOCEROSDOGSCATS
LIONSLEOPARDSDOMESTIC CATS
Persian CatsDomestic Short Hair Catsetc
59
Taxonomy defined
1 Logical word (semantic structure)
2 Precision vocabulary of preferred terms
3 Conveys understanding between humans with relevant knowledge and experience
4 Once linked to a precision code scheme the most important communication mechanism between computers and people
5 An art and a science
6 Once it is right it is OBVIOUS
Taxonomy example
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
61
Taxonomy relevance
1 Essential to effective operational and strategic use of business software
2 Nearly ALL validation lists (drop down lists) chart of accounts etc
3 Large body of expertise ndash Botany Zoology military filing Library Science Information Management etc
4 Unknown to many (most) IT professionals and business people
62
A computer isAn adding machine calculator
011+1=101+1+1=111+1+1+1=100
Called a ldquobitrdquo
8 bits make a byte
2 bytes make an ASCII character
A= ldquo41rdquo hex
0 1
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
46
30
1916
14
126 3
1 Mythology hype amp tradition -- 30
2 Lack of executive custody inap-propriate governance and policies -- 19
3 Lack of strategic architecture alignment etc -- 16
4 Lack of data engineering and poor configuration -- 14
5 Soft issues and change impacts -- 12
6 Lack of an engineering approach lack of precision etc -- 6
7 Technology issues -- 3
Factors causing ERP failure
47
22
20
19
17
14
6 2
1Executive custody strategic solution architect accountability -- 22
2 Effective change facilitation -- 20
3 Strategic architecture alignment etc -- 19
4 Data engineering and configuration -- 17
5 Engineering approach design against failure precision etc -- 14
6 Business integration training processes CBT --6
7 Technology -- 2
Factors for ERP reimplementation success
The value of technology is determined by the person using the technology
49
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
bull ldquoEnterprise Resource Planningrdquo = ERP Systemsbull or bull Integrated Business Information Systemsrdquo = IBIS
bull = ALL the information ldquorepositoriesrdquobull = databasesbull = tablesbull = listsbull = filing drawers folders
bull real world items that require description and managementbull
bull + the numerical computations workflow and other activities that are executed with the numbers (and text) stored in these repositories
bull ALL of which can be done by human beings -- including making a messbull
What is an ERP IBISA filing cabinet
51
IBIS ndash what every company REALLY has
Etc etc etc
Custom-ization
In-house custom development
Industry specific package
Brandname ERP = FRED
Spreadsheets
Data warehouse and BI
52
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
53
bull Stalled ERP implementation
bull CEO bought into ldquoERP as a strategic resourcerdquo based on my approach
bull Highly structured strategic Product Class taxonomy
bull Clever software to add products and maintain high quality master data
bull Projects module
bull Brand Management expense taxonomy
bull Clever software to create a project for every brand line with these expense heads
bull Direct integration with General Ledger
bull Comprehensive Brand Project Management and reporting to Principals in Europe
bull New account increased turnover significantly because could do something competitors could NOT do
Dramatic improvements in competitiveness growth and profitability are the ONLY valid arbiters of the success of an ERP implementation or a strategic plan
Case Study Strategic Engineered Precision Configuration WITH Clever Customization to support the ESSENCE
Data engineering
Data engineering principlesCase study
1 ERP Dramatic increase in management information
2 Reduction in head count
3 Dramatic reduction in audit time and cost
4 Unqualified balance sheet first time in 15 years
5 Presented with the client at a public conference
1 Strategic ndash Essence of the Business and how it thrives
2 Engineered ndash rigorous systematic comprehensively tried and tested methods standard conventions expert practitioners etc
3 Precision ndash exact carefully design meticulously fashioned
4 Taxonomies ndash hierarchical information classifications ordering and organizing business information
5 Coupled to precision code schemes which adhere to a number of very specific coding rules and conventions
6 A total solution
Founded on Strategic Engineered Precision Taxonomies (SEPTcopy)
57
Define Strategic Engineered Precision Configuration
bull Configuring the ERP so that it PRECISELY models the real worldbull The goal is that any executive manager supervisor or operator
can look at the configuration and say ldquoYES this IS my businessrdquobull Founded on master data taxonomies ndash structured semantic
contentbull Coupled to custom business specific attributesbull Supplemented by highly structured record level configurationbull Supporting small pieces of clever custom development that add
huge value and create huge strategic and operational opportunities
An ERP is a huge precision data processing factory
Feed it precision data
58
Conventional taxonomy example
ANIMALSELEPHANTSRHINOCEROSDOGSCATS
LIONSLEOPARDSDOMESTIC CATS
Persian CatsDomestic Short Hair Catsetc
59
Taxonomy defined
1 Logical word (semantic structure)
2 Precision vocabulary of preferred terms
3 Conveys understanding between humans with relevant knowledge and experience
4 Once linked to a precision code scheme the most important communication mechanism between computers and people
5 An art and a science
6 Once it is right it is OBVIOUS
Taxonomy example
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
61
Taxonomy relevance
1 Essential to effective operational and strategic use of business software
2 Nearly ALL validation lists (drop down lists) chart of accounts etc
3 Large body of expertise ndash Botany Zoology military filing Library Science Information Management etc
4 Unknown to many (most) IT professionals and business people
62
A computer isAn adding machine calculator
011+1=101+1+1=111+1+1+1=100
Called a ldquobitrdquo
8 bits make a byte
2 bytes make an ASCII character
A= ldquo41rdquo hex
0 1
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
47
22
20
19
17
14
6 2
1Executive custody strategic solution architect accountability -- 22
2 Effective change facilitation -- 20
3 Strategic architecture alignment etc -- 19
4 Data engineering and configuration -- 17
5 Engineering approach design against failure precision etc -- 14
6 Business integration training processes CBT --6
7 Technology -- 2
Factors for ERP reimplementation success
The value of technology is determined by the person using the technology
49
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
bull ldquoEnterprise Resource Planningrdquo = ERP Systemsbull or bull Integrated Business Information Systemsrdquo = IBIS
bull = ALL the information ldquorepositoriesrdquobull = databasesbull = tablesbull = listsbull = filing drawers folders
bull real world items that require description and managementbull
bull + the numerical computations workflow and other activities that are executed with the numbers (and text) stored in these repositories
bull ALL of which can be done by human beings -- including making a messbull
What is an ERP IBISA filing cabinet
51
IBIS ndash what every company REALLY has
Etc etc etc
Custom-ization
In-house custom development
Industry specific package
Brandname ERP = FRED
Spreadsheets
Data warehouse and BI
52
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
53
bull Stalled ERP implementation
bull CEO bought into ldquoERP as a strategic resourcerdquo based on my approach
bull Highly structured strategic Product Class taxonomy
bull Clever software to add products and maintain high quality master data
bull Projects module
bull Brand Management expense taxonomy
bull Clever software to create a project for every brand line with these expense heads
bull Direct integration with General Ledger
bull Comprehensive Brand Project Management and reporting to Principals in Europe
bull New account increased turnover significantly because could do something competitors could NOT do
Dramatic improvements in competitiveness growth and profitability are the ONLY valid arbiters of the success of an ERP implementation or a strategic plan
Case Study Strategic Engineered Precision Configuration WITH Clever Customization to support the ESSENCE
Data engineering
Data engineering principlesCase study
1 ERP Dramatic increase in management information
2 Reduction in head count
3 Dramatic reduction in audit time and cost
4 Unqualified balance sheet first time in 15 years
5 Presented with the client at a public conference
1 Strategic ndash Essence of the Business and how it thrives
2 Engineered ndash rigorous systematic comprehensively tried and tested methods standard conventions expert practitioners etc
3 Precision ndash exact carefully design meticulously fashioned
4 Taxonomies ndash hierarchical information classifications ordering and organizing business information
5 Coupled to precision code schemes which adhere to a number of very specific coding rules and conventions
6 A total solution
Founded on Strategic Engineered Precision Taxonomies (SEPTcopy)
57
Define Strategic Engineered Precision Configuration
bull Configuring the ERP so that it PRECISELY models the real worldbull The goal is that any executive manager supervisor or operator
can look at the configuration and say ldquoYES this IS my businessrdquobull Founded on master data taxonomies ndash structured semantic
contentbull Coupled to custom business specific attributesbull Supplemented by highly structured record level configurationbull Supporting small pieces of clever custom development that add
huge value and create huge strategic and operational opportunities
An ERP is a huge precision data processing factory
Feed it precision data
58
Conventional taxonomy example
ANIMALSELEPHANTSRHINOCEROSDOGSCATS
LIONSLEOPARDSDOMESTIC CATS
Persian CatsDomestic Short Hair Catsetc
59
Taxonomy defined
1 Logical word (semantic structure)
2 Precision vocabulary of preferred terms
3 Conveys understanding between humans with relevant knowledge and experience
4 Once linked to a precision code scheme the most important communication mechanism between computers and people
5 An art and a science
6 Once it is right it is OBVIOUS
Taxonomy example
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
61
Taxonomy relevance
1 Essential to effective operational and strategic use of business software
2 Nearly ALL validation lists (drop down lists) chart of accounts etc
3 Large body of expertise ndash Botany Zoology military filing Library Science Information Management etc
4 Unknown to many (most) IT professionals and business people
62
A computer isAn adding machine calculator
011+1=101+1+1=111+1+1+1=100
Called a ldquobitrdquo
8 bits make a byte
2 bytes make an ASCII character
A= ldquo41rdquo hex
0 1
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
The value of technology is determined by the person using the technology
49
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
bull ldquoEnterprise Resource Planningrdquo = ERP Systemsbull or bull Integrated Business Information Systemsrdquo = IBIS
bull = ALL the information ldquorepositoriesrdquobull = databasesbull = tablesbull = listsbull = filing drawers folders
bull real world items that require description and managementbull
bull + the numerical computations workflow and other activities that are executed with the numbers (and text) stored in these repositories
bull ALL of which can be done by human beings -- including making a messbull
What is an ERP IBISA filing cabinet
51
IBIS ndash what every company REALLY has
Etc etc etc
Custom-ization
In-house custom development
Industry specific package
Brandname ERP = FRED
Spreadsheets
Data warehouse and BI
52
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
53
bull Stalled ERP implementation
bull CEO bought into ldquoERP as a strategic resourcerdquo based on my approach
bull Highly structured strategic Product Class taxonomy
bull Clever software to add products and maintain high quality master data
bull Projects module
bull Brand Management expense taxonomy
bull Clever software to create a project for every brand line with these expense heads
bull Direct integration with General Ledger
bull Comprehensive Brand Project Management and reporting to Principals in Europe
bull New account increased turnover significantly because could do something competitors could NOT do
Dramatic improvements in competitiveness growth and profitability are the ONLY valid arbiters of the success of an ERP implementation or a strategic plan
Case Study Strategic Engineered Precision Configuration WITH Clever Customization to support the ESSENCE
Data engineering
Data engineering principlesCase study
1 ERP Dramatic increase in management information
2 Reduction in head count
3 Dramatic reduction in audit time and cost
4 Unqualified balance sheet first time in 15 years
5 Presented with the client at a public conference
1 Strategic ndash Essence of the Business and how it thrives
2 Engineered ndash rigorous systematic comprehensively tried and tested methods standard conventions expert practitioners etc
3 Precision ndash exact carefully design meticulously fashioned
4 Taxonomies ndash hierarchical information classifications ordering and organizing business information
5 Coupled to precision code schemes which adhere to a number of very specific coding rules and conventions
6 A total solution
Founded on Strategic Engineered Precision Taxonomies (SEPTcopy)
57
Define Strategic Engineered Precision Configuration
bull Configuring the ERP so that it PRECISELY models the real worldbull The goal is that any executive manager supervisor or operator
can look at the configuration and say ldquoYES this IS my businessrdquobull Founded on master data taxonomies ndash structured semantic
contentbull Coupled to custom business specific attributesbull Supplemented by highly structured record level configurationbull Supporting small pieces of clever custom development that add
huge value and create huge strategic and operational opportunities
An ERP is a huge precision data processing factory
Feed it precision data
58
Conventional taxonomy example
ANIMALSELEPHANTSRHINOCEROSDOGSCATS
LIONSLEOPARDSDOMESTIC CATS
Persian CatsDomestic Short Hair Catsetc
59
Taxonomy defined
1 Logical word (semantic structure)
2 Precision vocabulary of preferred terms
3 Conveys understanding between humans with relevant knowledge and experience
4 Once linked to a precision code scheme the most important communication mechanism between computers and people
5 An art and a science
6 Once it is right it is OBVIOUS
Taxonomy example
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
61
Taxonomy relevance
1 Essential to effective operational and strategic use of business software
2 Nearly ALL validation lists (drop down lists) chart of accounts etc
3 Large body of expertise ndash Botany Zoology military filing Library Science Information Management etc
4 Unknown to many (most) IT professionals and business people
62
A computer isAn adding machine calculator
011+1=101+1+1=111+1+1+1=100
Called a ldquobitrdquo
8 bits make a byte
2 bytes make an ASCII character
A= ldquo41rdquo hex
0 1
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
49
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
bull ldquoEnterprise Resource Planningrdquo = ERP Systemsbull or bull Integrated Business Information Systemsrdquo = IBIS
bull = ALL the information ldquorepositoriesrdquobull = databasesbull = tablesbull = listsbull = filing drawers folders
bull real world items that require description and managementbull
bull + the numerical computations workflow and other activities that are executed with the numbers (and text) stored in these repositories
bull ALL of which can be done by human beings -- including making a messbull
What is an ERP IBISA filing cabinet
51
IBIS ndash what every company REALLY has
Etc etc etc
Custom-ization
In-house custom development
Industry specific package
Brandname ERP = FRED
Spreadsheets
Data warehouse and BI
52
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
53
bull Stalled ERP implementation
bull CEO bought into ldquoERP as a strategic resourcerdquo based on my approach
bull Highly structured strategic Product Class taxonomy
bull Clever software to add products and maintain high quality master data
bull Projects module
bull Brand Management expense taxonomy
bull Clever software to create a project for every brand line with these expense heads
bull Direct integration with General Ledger
bull Comprehensive Brand Project Management and reporting to Principals in Europe
bull New account increased turnover significantly because could do something competitors could NOT do
Dramatic improvements in competitiveness growth and profitability are the ONLY valid arbiters of the success of an ERP implementation or a strategic plan
Case Study Strategic Engineered Precision Configuration WITH Clever Customization to support the ESSENCE
Data engineering
Data engineering principlesCase study
1 ERP Dramatic increase in management information
2 Reduction in head count
3 Dramatic reduction in audit time and cost
4 Unqualified balance sheet first time in 15 years
5 Presented with the client at a public conference
1 Strategic ndash Essence of the Business and how it thrives
2 Engineered ndash rigorous systematic comprehensively tried and tested methods standard conventions expert practitioners etc
3 Precision ndash exact carefully design meticulously fashioned
4 Taxonomies ndash hierarchical information classifications ordering and organizing business information
5 Coupled to precision code schemes which adhere to a number of very specific coding rules and conventions
6 A total solution
Founded on Strategic Engineered Precision Taxonomies (SEPTcopy)
57
Define Strategic Engineered Precision Configuration
bull Configuring the ERP so that it PRECISELY models the real worldbull The goal is that any executive manager supervisor or operator
can look at the configuration and say ldquoYES this IS my businessrdquobull Founded on master data taxonomies ndash structured semantic
contentbull Coupled to custom business specific attributesbull Supplemented by highly structured record level configurationbull Supporting small pieces of clever custom development that add
huge value and create huge strategic and operational opportunities
An ERP is a huge precision data processing factory
Feed it precision data
58
Conventional taxonomy example
ANIMALSELEPHANTSRHINOCEROSDOGSCATS
LIONSLEOPARDSDOMESTIC CATS
Persian CatsDomestic Short Hair Catsetc
59
Taxonomy defined
1 Logical word (semantic structure)
2 Precision vocabulary of preferred terms
3 Conveys understanding between humans with relevant knowledge and experience
4 Once linked to a precision code scheme the most important communication mechanism between computers and people
5 An art and a science
6 Once it is right it is OBVIOUS
Taxonomy example
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
61
Taxonomy relevance
1 Essential to effective operational and strategic use of business software
2 Nearly ALL validation lists (drop down lists) chart of accounts etc
3 Large body of expertise ndash Botany Zoology military filing Library Science Information Management etc
4 Unknown to many (most) IT professionals and business people
62
A computer isAn adding machine calculator
011+1=101+1+1=111+1+1+1=100
Called a ldquobitrdquo
8 bits make a byte
2 bytes make an ASCII character
A= ldquo41rdquo hex
0 1
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
bull ldquoEnterprise Resource Planningrdquo = ERP Systemsbull or bull Integrated Business Information Systemsrdquo = IBIS
bull = ALL the information ldquorepositoriesrdquobull = databasesbull = tablesbull = listsbull = filing drawers folders
bull real world items that require description and managementbull
bull + the numerical computations workflow and other activities that are executed with the numbers (and text) stored in these repositories
bull ALL of which can be done by human beings -- including making a messbull
What is an ERP IBISA filing cabinet
51
IBIS ndash what every company REALLY has
Etc etc etc
Custom-ization
In-house custom development
Industry specific package
Brandname ERP = FRED
Spreadsheets
Data warehouse and BI
52
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
53
bull Stalled ERP implementation
bull CEO bought into ldquoERP as a strategic resourcerdquo based on my approach
bull Highly structured strategic Product Class taxonomy
bull Clever software to add products and maintain high quality master data
bull Projects module
bull Brand Management expense taxonomy
bull Clever software to create a project for every brand line with these expense heads
bull Direct integration with General Ledger
bull Comprehensive Brand Project Management and reporting to Principals in Europe
bull New account increased turnover significantly because could do something competitors could NOT do
Dramatic improvements in competitiveness growth and profitability are the ONLY valid arbiters of the success of an ERP implementation or a strategic plan
Case Study Strategic Engineered Precision Configuration WITH Clever Customization to support the ESSENCE
Data engineering
Data engineering principlesCase study
1 ERP Dramatic increase in management information
2 Reduction in head count
3 Dramatic reduction in audit time and cost
4 Unqualified balance sheet first time in 15 years
5 Presented with the client at a public conference
1 Strategic ndash Essence of the Business and how it thrives
2 Engineered ndash rigorous systematic comprehensively tried and tested methods standard conventions expert practitioners etc
3 Precision ndash exact carefully design meticulously fashioned
4 Taxonomies ndash hierarchical information classifications ordering and organizing business information
5 Coupled to precision code schemes which adhere to a number of very specific coding rules and conventions
6 A total solution
Founded on Strategic Engineered Precision Taxonomies (SEPTcopy)
57
Define Strategic Engineered Precision Configuration
bull Configuring the ERP so that it PRECISELY models the real worldbull The goal is that any executive manager supervisor or operator
can look at the configuration and say ldquoYES this IS my businessrdquobull Founded on master data taxonomies ndash structured semantic
contentbull Coupled to custom business specific attributesbull Supplemented by highly structured record level configurationbull Supporting small pieces of clever custom development that add
huge value and create huge strategic and operational opportunities
An ERP is a huge precision data processing factory
Feed it precision data
58
Conventional taxonomy example
ANIMALSELEPHANTSRHINOCEROSDOGSCATS
LIONSLEOPARDSDOMESTIC CATS
Persian CatsDomestic Short Hair Catsetc
59
Taxonomy defined
1 Logical word (semantic structure)
2 Precision vocabulary of preferred terms
3 Conveys understanding between humans with relevant knowledge and experience
4 Once linked to a precision code scheme the most important communication mechanism between computers and people
5 An art and a science
6 Once it is right it is OBVIOUS
Taxonomy example
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
61
Taxonomy relevance
1 Essential to effective operational and strategic use of business software
2 Nearly ALL validation lists (drop down lists) chart of accounts etc
3 Large body of expertise ndash Botany Zoology military filing Library Science Information Management etc
4 Unknown to many (most) IT professionals and business people
62
A computer isAn adding machine calculator
011+1=101+1+1=111+1+1+1=100
Called a ldquobitrdquo
8 bits make a byte
2 bytes make an ASCII character
A= ldquo41rdquo hex
0 1
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
51
IBIS ndash what every company REALLY has
Etc etc etc
Custom-ization
In-house custom development
Industry specific package
Brandname ERP = FRED
Spreadsheets
Data warehouse and BI
52
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
53
bull Stalled ERP implementation
bull CEO bought into ldquoERP as a strategic resourcerdquo based on my approach
bull Highly structured strategic Product Class taxonomy
bull Clever software to add products and maintain high quality master data
bull Projects module
bull Brand Management expense taxonomy
bull Clever software to create a project for every brand line with these expense heads
bull Direct integration with General Ledger
bull Comprehensive Brand Project Management and reporting to Principals in Europe
bull New account increased turnover significantly because could do something competitors could NOT do
Dramatic improvements in competitiveness growth and profitability are the ONLY valid arbiters of the success of an ERP implementation or a strategic plan
Case Study Strategic Engineered Precision Configuration WITH Clever Customization to support the ESSENCE
Data engineering
Data engineering principlesCase study
1 ERP Dramatic increase in management information
2 Reduction in head count
3 Dramatic reduction in audit time and cost
4 Unqualified balance sheet first time in 15 years
5 Presented with the client at a public conference
1 Strategic ndash Essence of the Business and how it thrives
2 Engineered ndash rigorous systematic comprehensively tried and tested methods standard conventions expert practitioners etc
3 Precision ndash exact carefully design meticulously fashioned
4 Taxonomies ndash hierarchical information classifications ordering and organizing business information
5 Coupled to precision code schemes which adhere to a number of very specific coding rules and conventions
6 A total solution
Founded on Strategic Engineered Precision Taxonomies (SEPTcopy)
57
Define Strategic Engineered Precision Configuration
bull Configuring the ERP so that it PRECISELY models the real worldbull The goal is that any executive manager supervisor or operator
can look at the configuration and say ldquoYES this IS my businessrdquobull Founded on master data taxonomies ndash structured semantic
contentbull Coupled to custom business specific attributesbull Supplemented by highly structured record level configurationbull Supporting small pieces of clever custom development that add
huge value and create huge strategic and operational opportunities
An ERP is a huge precision data processing factory
Feed it precision data
58
Conventional taxonomy example
ANIMALSELEPHANTSRHINOCEROSDOGSCATS
LIONSLEOPARDSDOMESTIC CATS
Persian CatsDomestic Short Hair Catsetc
59
Taxonomy defined
1 Logical word (semantic structure)
2 Precision vocabulary of preferred terms
3 Conveys understanding between humans with relevant knowledge and experience
4 Once linked to a precision code scheme the most important communication mechanism between computers and people
5 An art and a science
6 Once it is right it is OBVIOUS
Taxonomy example
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
61
Taxonomy relevance
1 Essential to effective operational and strategic use of business software
2 Nearly ALL validation lists (drop down lists) chart of accounts etc
3 Large body of expertise ndash Botany Zoology military filing Library Science Information Management etc
4 Unknown to many (most) IT professionals and business people
62
A computer isAn adding machine calculator
011+1=101+1+1=111+1+1+1=100
Called a ldquobitrdquo
8 bits make a byte
2 bytes make an ASCII character
A= ldquo41rdquo hex
0 1
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
52
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
53
bull Stalled ERP implementation
bull CEO bought into ldquoERP as a strategic resourcerdquo based on my approach
bull Highly structured strategic Product Class taxonomy
bull Clever software to add products and maintain high quality master data
bull Projects module
bull Brand Management expense taxonomy
bull Clever software to create a project for every brand line with these expense heads
bull Direct integration with General Ledger
bull Comprehensive Brand Project Management and reporting to Principals in Europe
bull New account increased turnover significantly because could do something competitors could NOT do
Dramatic improvements in competitiveness growth and profitability are the ONLY valid arbiters of the success of an ERP implementation or a strategic plan
Case Study Strategic Engineered Precision Configuration WITH Clever Customization to support the ESSENCE
Data engineering
Data engineering principlesCase study
1 ERP Dramatic increase in management information
2 Reduction in head count
3 Dramatic reduction in audit time and cost
4 Unqualified balance sheet first time in 15 years
5 Presented with the client at a public conference
1 Strategic ndash Essence of the Business and how it thrives
2 Engineered ndash rigorous systematic comprehensively tried and tested methods standard conventions expert practitioners etc
3 Precision ndash exact carefully design meticulously fashioned
4 Taxonomies ndash hierarchical information classifications ordering and organizing business information
5 Coupled to precision code schemes which adhere to a number of very specific coding rules and conventions
6 A total solution
Founded on Strategic Engineered Precision Taxonomies (SEPTcopy)
57
Define Strategic Engineered Precision Configuration
bull Configuring the ERP so that it PRECISELY models the real worldbull The goal is that any executive manager supervisor or operator
can look at the configuration and say ldquoYES this IS my businessrdquobull Founded on master data taxonomies ndash structured semantic
contentbull Coupled to custom business specific attributesbull Supplemented by highly structured record level configurationbull Supporting small pieces of clever custom development that add
huge value and create huge strategic and operational opportunities
An ERP is a huge precision data processing factory
Feed it precision data
58
Conventional taxonomy example
ANIMALSELEPHANTSRHINOCEROSDOGSCATS
LIONSLEOPARDSDOMESTIC CATS
Persian CatsDomestic Short Hair Catsetc
59
Taxonomy defined
1 Logical word (semantic structure)
2 Precision vocabulary of preferred terms
3 Conveys understanding between humans with relevant knowledge and experience
4 Once linked to a precision code scheme the most important communication mechanism between computers and people
5 An art and a science
6 Once it is right it is OBVIOUS
Taxonomy example
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
61
Taxonomy relevance
1 Essential to effective operational and strategic use of business software
2 Nearly ALL validation lists (drop down lists) chart of accounts etc
3 Large body of expertise ndash Botany Zoology military filing Library Science Information Management etc
4 Unknown to many (most) IT professionals and business people
62
A computer isAn adding machine calculator
011+1=101+1+1=111+1+1+1=100
Called a ldquobitrdquo
8 bits make a byte
2 bytes make an ASCII character
A= ldquo41rdquo hex
0 1
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
53
bull Stalled ERP implementation
bull CEO bought into ldquoERP as a strategic resourcerdquo based on my approach
bull Highly structured strategic Product Class taxonomy
bull Clever software to add products and maintain high quality master data
bull Projects module
bull Brand Management expense taxonomy
bull Clever software to create a project for every brand line with these expense heads
bull Direct integration with General Ledger
bull Comprehensive Brand Project Management and reporting to Principals in Europe
bull New account increased turnover significantly because could do something competitors could NOT do
Dramatic improvements in competitiveness growth and profitability are the ONLY valid arbiters of the success of an ERP implementation or a strategic plan
Case Study Strategic Engineered Precision Configuration WITH Clever Customization to support the ESSENCE
Data engineering
Data engineering principlesCase study
1 ERP Dramatic increase in management information
2 Reduction in head count
3 Dramatic reduction in audit time and cost
4 Unqualified balance sheet first time in 15 years
5 Presented with the client at a public conference
1 Strategic ndash Essence of the Business and how it thrives
2 Engineered ndash rigorous systematic comprehensively tried and tested methods standard conventions expert practitioners etc
3 Precision ndash exact carefully design meticulously fashioned
4 Taxonomies ndash hierarchical information classifications ordering and organizing business information
5 Coupled to precision code schemes which adhere to a number of very specific coding rules and conventions
6 A total solution
Founded on Strategic Engineered Precision Taxonomies (SEPTcopy)
57
Define Strategic Engineered Precision Configuration
bull Configuring the ERP so that it PRECISELY models the real worldbull The goal is that any executive manager supervisor or operator
can look at the configuration and say ldquoYES this IS my businessrdquobull Founded on master data taxonomies ndash structured semantic
contentbull Coupled to custom business specific attributesbull Supplemented by highly structured record level configurationbull Supporting small pieces of clever custom development that add
huge value and create huge strategic and operational opportunities
An ERP is a huge precision data processing factory
Feed it precision data
58
Conventional taxonomy example
ANIMALSELEPHANTSRHINOCEROSDOGSCATS
LIONSLEOPARDSDOMESTIC CATS
Persian CatsDomestic Short Hair Catsetc
59
Taxonomy defined
1 Logical word (semantic structure)
2 Precision vocabulary of preferred terms
3 Conveys understanding between humans with relevant knowledge and experience
4 Once linked to a precision code scheme the most important communication mechanism between computers and people
5 An art and a science
6 Once it is right it is OBVIOUS
Taxonomy example
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
61
Taxonomy relevance
1 Essential to effective operational and strategic use of business software
2 Nearly ALL validation lists (drop down lists) chart of accounts etc
3 Large body of expertise ndash Botany Zoology military filing Library Science Information Management etc
4 Unknown to many (most) IT professionals and business people
62
A computer isAn adding machine calculator
011+1=101+1+1=111+1+1+1=100
Called a ldquobitrdquo
8 bits make a byte
2 bytes make an ASCII character
A= ldquo41rdquo hex
0 1
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
Data engineering
Data engineering principlesCase study
1 ERP Dramatic increase in management information
2 Reduction in head count
3 Dramatic reduction in audit time and cost
4 Unqualified balance sheet first time in 15 years
5 Presented with the client at a public conference
1 Strategic ndash Essence of the Business and how it thrives
2 Engineered ndash rigorous systematic comprehensively tried and tested methods standard conventions expert practitioners etc
3 Precision ndash exact carefully design meticulously fashioned
4 Taxonomies ndash hierarchical information classifications ordering and organizing business information
5 Coupled to precision code schemes which adhere to a number of very specific coding rules and conventions
6 A total solution
Founded on Strategic Engineered Precision Taxonomies (SEPTcopy)
57
Define Strategic Engineered Precision Configuration
bull Configuring the ERP so that it PRECISELY models the real worldbull The goal is that any executive manager supervisor or operator
can look at the configuration and say ldquoYES this IS my businessrdquobull Founded on master data taxonomies ndash structured semantic
contentbull Coupled to custom business specific attributesbull Supplemented by highly structured record level configurationbull Supporting small pieces of clever custom development that add
huge value and create huge strategic and operational opportunities
An ERP is a huge precision data processing factory
Feed it precision data
58
Conventional taxonomy example
ANIMALSELEPHANTSRHINOCEROSDOGSCATS
LIONSLEOPARDSDOMESTIC CATS
Persian CatsDomestic Short Hair Catsetc
59
Taxonomy defined
1 Logical word (semantic structure)
2 Precision vocabulary of preferred terms
3 Conveys understanding between humans with relevant knowledge and experience
4 Once linked to a precision code scheme the most important communication mechanism between computers and people
5 An art and a science
6 Once it is right it is OBVIOUS
Taxonomy example
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
61
Taxonomy relevance
1 Essential to effective operational and strategic use of business software
2 Nearly ALL validation lists (drop down lists) chart of accounts etc
3 Large body of expertise ndash Botany Zoology military filing Library Science Information Management etc
4 Unknown to many (most) IT professionals and business people
62
A computer isAn adding machine calculator
011+1=101+1+1=111+1+1+1=100
Called a ldquobitrdquo
8 bits make a byte
2 bytes make an ASCII character
A= ldquo41rdquo hex
0 1
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
Data engineering principlesCase study
1 ERP Dramatic increase in management information
2 Reduction in head count
3 Dramatic reduction in audit time and cost
4 Unqualified balance sheet first time in 15 years
5 Presented with the client at a public conference
1 Strategic ndash Essence of the Business and how it thrives
2 Engineered ndash rigorous systematic comprehensively tried and tested methods standard conventions expert practitioners etc
3 Precision ndash exact carefully design meticulously fashioned
4 Taxonomies ndash hierarchical information classifications ordering and organizing business information
5 Coupled to precision code schemes which adhere to a number of very specific coding rules and conventions
6 A total solution
Founded on Strategic Engineered Precision Taxonomies (SEPTcopy)
57
Define Strategic Engineered Precision Configuration
bull Configuring the ERP so that it PRECISELY models the real worldbull The goal is that any executive manager supervisor or operator
can look at the configuration and say ldquoYES this IS my businessrdquobull Founded on master data taxonomies ndash structured semantic
contentbull Coupled to custom business specific attributesbull Supplemented by highly structured record level configurationbull Supporting small pieces of clever custom development that add
huge value and create huge strategic and operational opportunities
An ERP is a huge precision data processing factory
Feed it precision data
58
Conventional taxonomy example
ANIMALSELEPHANTSRHINOCEROSDOGSCATS
LIONSLEOPARDSDOMESTIC CATS
Persian CatsDomestic Short Hair Catsetc
59
Taxonomy defined
1 Logical word (semantic structure)
2 Precision vocabulary of preferred terms
3 Conveys understanding between humans with relevant knowledge and experience
4 Once linked to a precision code scheme the most important communication mechanism between computers and people
5 An art and a science
6 Once it is right it is OBVIOUS
Taxonomy example
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
61
Taxonomy relevance
1 Essential to effective operational and strategic use of business software
2 Nearly ALL validation lists (drop down lists) chart of accounts etc
3 Large body of expertise ndash Botany Zoology military filing Library Science Information Management etc
4 Unknown to many (most) IT professionals and business people
62
A computer isAn adding machine calculator
011+1=101+1+1=111+1+1+1=100
Called a ldquobitrdquo
8 bits make a byte
2 bytes make an ASCII character
A= ldquo41rdquo hex
0 1
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
1 Strategic ndash Essence of the Business and how it thrives
2 Engineered ndash rigorous systematic comprehensively tried and tested methods standard conventions expert practitioners etc
3 Precision ndash exact carefully design meticulously fashioned
4 Taxonomies ndash hierarchical information classifications ordering and organizing business information
5 Coupled to precision code schemes which adhere to a number of very specific coding rules and conventions
6 A total solution
Founded on Strategic Engineered Precision Taxonomies (SEPTcopy)
57
Define Strategic Engineered Precision Configuration
bull Configuring the ERP so that it PRECISELY models the real worldbull The goal is that any executive manager supervisor or operator
can look at the configuration and say ldquoYES this IS my businessrdquobull Founded on master data taxonomies ndash structured semantic
contentbull Coupled to custom business specific attributesbull Supplemented by highly structured record level configurationbull Supporting small pieces of clever custom development that add
huge value and create huge strategic and operational opportunities
An ERP is a huge precision data processing factory
Feed it precision data
58
Conventional taxonomy example
ANIMALSELEPHANTSRHINOCEROSDOGSCATS
LIONSLEOPARDSDOMESTIC CATS
Persian CatsDomestic Short Hair Catsetc
59
Taxonomy defined
1 Logical word (semantic structure)
2 Precision vocabulary of preferred terms
3 Conveys understanding between humans with relevant knowledge and experience
4 Once linked to a precision code scheme the most important communication mechanism between computers and people
5 An art and a science
6 Once it is right it is OBVIOUS
Taxonomy example
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
61
Taxonomy relevance
1 Essential to effective operational and strategic use of business software
2 Nearly ALL validation lists (drop down lists) chart of accounts etc
3 Large body of expertise ndash Botany Zoology military filing Library Science Information Management etc
4 Unknown to many (most) IT professionals and business people
62
A computer isAn adding machine calculator
011+1=101+1+1=111+1+1+1=100
Called a ldquobitrdquo
8 bits make a byte
2 bytes make an ASCII character
A= ldquo41rdquo hex
0 1
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
57
Define Strategic Engineered Precision Configuration
bull Configuring the ERP so that it PRECISELY models the real worldbull The goal is that any executive manager supervisor or operator
can look at the configuration and say ldquoYES this IS my businessrdquobull Founded on master data taxonomies ndash structured semantic
contentbull Coupled to custom business specific attributesbull Supplemented by highly structured record level configurationbull Supporting small pieces of clever custom development that add
huge value and create huge strategic and operational opportunities
An ERP is a huge precision data processing factory
Feed it precision data
58
Conventional taxonomy example
ANIMALSELEPHANTSRHINOCEROSDOGSCATS
LIONSLEOPARDSDOMESTIC CATS
Persian CatsDomestic Short Hair Catsetc
59
Taxonomy defined
1 Logical word (semantic structure)
2 Precision vocabulary of preferred terms
3 Conveys understanding between humans with relevant knowledge and experience
4 Once linked to a precision code scheme the most important communication mechanism between computers and people
5 An art and a science
6 Once it is right it is OBVIOUS
Taxonomy example
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
61
Taxonomy relevance
1 Essential to effective operational and strategic use of business software
2 Nearly ALL validation lists (drop down lists) chart of accounts etc
3 Large body of expertise ndash Botany Zoology military filing Library Science Information Management etc
4 Unknown to many (most) IT professionals and business people
62
A computer isAn adding machine calculator
011+1=101+1+1=111+1+1+1=100
Called a ldquobitrdquo
8 bits make a byte
2 bytes make an ASCII character
A= ldquo41rdquo hex
0 1
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
58
Conventional taxonomy example
ANIMALSELEPHANTSRHINOCEROSDOGSCATS
LIONSLEOPARDSDOMESTIC CATS
Persian CatsDomestic Short Hair Catsetc
59
Taxonomy defined
1 Logical word (semantic structure)
2 Precision vocabulary of preferred terms
3 Conveys understanding between humans with relevant knowledge and experience
4 Once linked to a precision code scheme the most important communication mechanism between computers and people
5 An art and a science
6 Once it is right it is OBVIOUS
Taxonomy example
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
61
Taxonomy relevance
1 Essential to effective operational and strategic use of business software
2 Nearly ALL validation lists (drop down lists) chart of accounts etc
3 Large body of expertise ndash Botany Zoology military filing Library Science Information Management etc
4 Unknown to many (most) IT professionals and business people
62
A computer isAn adding machine calculator
011+1=101+1+1=111+1+1+1=100
Called a ldquobitrdquo
8 bits make a byte
2 bytes make an ASCII character
A= ldquo41rdquo hex
0 1
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
59
Taxonomy defined
1 Logical word (semantic structure)
2 Precision vocabulary of preferred terms
3 Conveys understanding between humans with relevant knowledge and experience
4 Once linked to a precision code scheme the most important communication mechanism between computers and people
5 An art and a science
6 Once it is right it is OBVIOUS
Taxonomy example
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
61
Taxonomy relevance
1 Essential to effective operational and strategic use of business software
2 Nearly ALL validation lists (drop down lists) chart of accounts etc
3 Large body of expertise ndash Botany Zoology military filing Library Science Information Management etc
4 Unknown to many (most) IT professionals and business people
62
A computer isAn adding machine calculator
011+1=101+1+1=111+1+1+1=100
Called a ldquobitrdquo
8 bits make a byte
2 bytes make an ASCII character
A= ldquo41rdquo hex
0 1
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
Taxonomy example
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
61
Taxonomy relevance
1 Essential to effective operational and strategic use of business software
2 Nearly ALL validation lists (drop down lists) chart of accounts etc
3 Large body of expertise ndash Botany Zoology military filing Library Science Information Management etc
4 Unknown to many (most) IT professionals and business people
62
A computer isAn adding machine calculator
011+1=101+1+1=111+1+1+1=100
Called a ldquobitrdquo
8 bits make a byte
2 bytes make an ASCII character
A= ldquo41rdquo hex
0 1
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
61
Taxonomy relevance
1 Essential to effective operational and strategic use of business software
2 Nearly ALL validation lists (drop down lists) chart of accounts etc
3 Large body of expertise ndash Botany Zoology military filing Library Science Information Management etc
4 Unknown to many (most) IT professionals and business people
62
A computer isAn adding machine calculator
011+1=101+1+1=111+1+1+1=100
Called a ldquobitrdquo
8 bits make a byte
2 bytes make an ASCII character
A= ldquo41rdquo hex
0 1
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
62
A computer isAn adding machine calculator
011+1=101+1+1=111+1+1+1=100
Called a ldquobitrdquo
8 bits make a byte
2 bytes make an ASCII character
A= ldquo41rdquo hex
0 1
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
63
Coding taxonomies
1 Computers only understand binary
2 The code is a unique binary pattern that corresponds to the structured language taxonomy
3 The only way the computer will appear to be intelligent
4 Results in ldquointelligent datardquo
5 Standard conventions1 Indents and trailing periods
2 Capitalization
3 Other standards and conventions
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
64
Taxonomy examples
1 Some practical examples of how code schemes should look
2 Various small validation lists ndash some custom some standard
3 Various custom product attributes
4 Product classification ndash custom field
5 Machine vehicle operating costs and spares
6 Consolidation Charts of Accounts medium and large organizations
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
65
Example of custom data entry screenWith custom taxonomies
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
Custom code maintenance development for client specific taxonomy
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
Matching codes in unrelated module provide logical integration
Getting the software to do what it supposedly cannot do
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
Example of exceptionally BAD practice
500528 Waste Material Consumed500530 Loss from valuation of external materials500540 Loss from valuation of own materials500550 Losses - inventory variance -consignment
sale500560 Safety Clothing500565 Safety Equipment500570 Sand amp Stone500575 Scraper Rope500580 Scrapers500585 Services500590 Signs500595 Skips amp Cages500600 Finished Goods Inventory Offset500605 Smelting amp Refining500610 Production Order Settlement - Variance500615 Steel Other500620 Steel Sections500625 Steel Sheets amp Plates
Huge impact on integration reporting etc
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
Current Issues with the hellip Master
bull Unstructured
bull Lack of robust disciplined code management
bull Different blocks of codes for different divisions
bull Same item in more than one place
bull Different categories should be in distinctly separate logical blocks
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
Current Issues with the hellip Master
bull Equivalent descriptions different codes
bull Warehouse codes embedded in item codes
bull As many as twenty occurrences of the same physical
bull Makes operation and reporting inaccurate and difficult
NQR500 TRUCKISUZUNQR500OR HHOSES EXT OUTSIDE REPAIRS HYD HOSES EXTOR HHOSES INT OUTSIDE REPAIRS HYD HOSES INTOR WINDOWS EXT OUTSIDE REPAIRS - WINDOWS EXTOR WINDOWS INT OUTSIDE REPAIRS - WINDOWS INTOREP HYD HOSES OUTSIDE REPAIRS - HYD HOSESOREP WINDOWS OUTSIDE REPAIRS - WINDOWSOIL MAROPA 320 MAROPA 320 OILOIL01 AUTO TRANS FLUID (ATF)DBOIL01-R0303 AUTO TRANS FLUID (ATF)DBOIL01-R0304 AUTO TRANS FLUID (ATF)DBOIL01-R0305 AUTO TRANS FLUID (ATF)DBOIL01-R0306 AUTO TRANS FLUID (ATF)DBOIL01-R0307 AUTO TRANS FLUID (ATF)DB
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
ITEM CODE DESCRIPTION ITEM CODE DESCRIPTION100004200002 TYRE LOCK RING SFETY 25 175R25 XGC E3 TYRE MICHELIN 175R25 XGC E3100004203007 TYRE MC1800R25XHAD 2 19575R16C TYRE MICHELIN 19575R16C100004203008 TYRE MC175R25XMD2 2 225R25 YO TYRE TYRE 100004203018 TYRE BS265R25VLTSE4 235X25 FS TYRE 100004203019 TYRE BS205R25VLTSE4 255R25 FS TYRE 100004203020 TYRE BS1200R24M840 265R25 FS TYRE 100004203026 TYRE FS195R14 CV2000 265R25 GY TYRE 100004203030 TYRE NOK205R25 L3 LODER GRIP BS265R25VLTSE4 TYRE BRIDGESTONE BS265R25VLTS100004203032 TYRE TOY265-25G25L520PR MC205R25XADN1 TYRE MICHELIN MC205R25XADN1100004203036 TYRE TOY205R25E3 MC235R25XADN1 TYRE MICHELIN MC235R25XADN1100004203055 TYRE MC1200R24XZY MC235R25XMD22 TYRE MICHELIN MC235R25XMD22100004203062 TYRE BS265-25L5 MC265R25XADN1 TYRE MICHELIN MC265R25XADN1100004203063 TYRE DUN265-25L5 MC265R25XMD22 TYRE MICHELIN MC265R25XMD22100004203065 TYRE MC1800R25XKD S1800R25 TYRE 100004203067 TYRE GENERAL 265-25L5 40PLY S225R25 YO TY TYRE 100004203074 TYRE BS295R25VLTSZ S235X25 FS TYRE 100004203077 TYRE PRIMEX 235-25L5 SLICK S255R25 FS TYRE 103194203001 TYRE BF GOOD RICH 40070R20 S265R25 BS TYRE BRIDGESTONE 265R25 VLT801070704049 TYRE O-RING 325T S265R25 FS TYRE 801070704051 TYRE VALVE S265R25 GY TYRE 801070704052 TYRE VALVE CORE SRI0008 TYRE MICHELIN 295R25 XADN801070704053 TYRE HANLING FEE SERVICE FEE TYRE SERVICE FEE1200R24 XZY E2 TYRE MICHELIN 1200R24 XZY E2 SPUD TYRE SPUD
Current Issues with the hellip Master Multiple occurrences of the same
physical entity with different codes
Very different codes for broadly identical physical entities ndash tyres ndash locate in entirely different locations in the table
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
Precision ordered dataVersus hellip
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
73
Value versus precisionA critical consideration
Practical fundamental strategic taxonomy precision
Busi
ness
valu
e d
eliv
ere
d
100
100
The goal
Just about every implementation I have ever seen
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
Financial cubeEssence of integrationWell over 1000 hours RampD
Location
Fun
ctio
n
Accounts
Accounts -- fi
nancial
Assets
Prod
ucts
Peop
le
Pro
ject
s
etc
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
Cubic business modelA logical taxonomic construct
Every organization has a location logical dimension ndash where we do what we do
and a functional logical dimension ndash what we do
These can be plotted on a matrix of function versus location
This is fundamental to the design of a chart of accounts and all other logical components that define the business
There are multiple further dimensions including income expenditure personnel machines products etc
Each of these should be described by a fundamental precision strategic taxonomy
This model in the general ledger provides a critical elment of integration
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
Financial Analysis Suite
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
Financial Analysis Suite
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
Financial Analysis Suite
1 Broad concept been known to me for over twenty years
2 I have done some elements semi-manually
3 For years I thought everyone could understand this and do it
4 Never seen anything like it
5 Extremely powerful tool
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
The true value
1 Exceptionally high quality financial data
2 Extremely easy to access and analyze
3 Facilitate greatly improved high value executive level strategic decision making ndash the decisions to thrive
4 Properly used WILL lead to greatly improved competitiveness and profitability
5 This will enhance profitable growth
6 Every organization needs this
7 The current ERP market is estimated at US$56 billion
8 We can easily capture at least 1 of this over the next ten years ndash this is THE way of the future
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
1 Taxonomy approach immediately engages with executives to specify high level configuration focused on the essence of the business ndash focus on better decision making NOT process ndash strategic executive level facilitation ndash excellent executive engagement and custody
2 Fundamental focus on better strategic (thrive) decisions at executive and operational level ndash put the essence (strategy) of the business in the face of staff at all levels constantly
3 Design geared to answering the questions you have not yet thought to ask ndash no need for lengthy business requirements workshops
4 Orders of magnitude improvement in system strategic support value delivery ndash basis for enabling executives and managers to make much better decisions IF they do the work to interpret and act on the information
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
What is different about the JARampA approach to precision strategic configuration ndash all proprietary
5 Move away from expensive resources constantly maintaining simple reports to developing sophisticated models that support high value understanding analysis and decision making
6 Major improvements in quality of master data and ease of master data maintenance
7 Systems easier and more efficient to use at a transaction level frequently results in productivity gains and head count reductions reduction in audit fees etc
8 Do things the software vendor does not think are possible and that may create substantial strategic value opportunities
9 Establish a culture of data precision in fact a whole culture relating to the way you run your systems
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
1 Strategic (thrive) decision support ndash psychology of decision making ndash strategic elements at top of list comply with cognitive span equals seven plus or minus two items at any level of hierarchy
2 Every validation list custom validation lists fully describe entities the way the business and executives think about them
3 Fundamental first principles strategic design with finely granular highly structured hierarchically presented content
4 Ease of reading and navigation ndash trailing periods indents capitalization precision language ndash semantic structure ndash JARampA originated standards and conventions
5 Ease of reporting ndash range coding ndash ease of report maintenance ndash context for precision configuration ndash ease and quality of master data maintenance
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
Essential elements of the JARampA approach to precision strategic configuration ndash all proprietary
6 Creative strategic use of unrelated modules to work together and limited scope creative strategic custom development ndash the impossible achieved affordably
7 Cubic business model ndash a powerful logical ldquoactivity basedrdquo management model in the General Ledger ndash powerful strategic decision support benefits with major positive governance impacts and reduced audit fees ndash JARampA have custom developed software to assist with this
8 Lower long term system operating costs coupled with ORDERS OF MAGNITUDE IMPROVEMENT in effectiveness efficiency and decision support ndash better thrive (profitable growth decisions) ndash where the REAL value lies ndash answer the questions we have not yet thought of
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
85
e
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
Summing up ndash the JARampA Approach to Creating Competitive Advantage
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Requires a significant investment
5 An ART and a science
6 Vital to unlocking the true value of any Business Information System Investment
7 An opportunity for dramatic gearing of any investment
Better DECISIONS
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
87
AgendaIBIS ndash the Strategic view of Business Information
1 Context
2 Discover and define the long term future focused strategic essence of the business
3 Key principles of executive level strategic decision making
4 Typical ERP implementation and operating traps and how to avoid them
5 What is IBIS and why it is the way of the future -- why does it go way beyond ERP
6 The fundamental principles of Precision Configuration
7 Ten things to enhance your current systems
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
88
What can be done
1 Buy a new ERP ndash expensive high risk
2 Re-implement your current ERP ndash not quite as expensive
3 Comprehensive Data Warehouse with Precision Taxonomies ndash not nearly as expensive or high risk but still costly
4 Anything else -- SMALL changes
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
What is an ERPREALLY
A huge precision data processing factory that SHOULD be fed precision data in order to produce precision
results (the factory CAN be OLD)
What is an ERPRefurbish
vs Deleting a building
What is an ERPRefurbish
vs Deleting a building
vs Deleting a building
1 Software settings
2 Cubic Business Modeltrade in the General Ledger
3 Asset classification
4 Product Material Item classification catalogue
5 Classification of Personnel
6 Other specific classifications
7 Unique attributes on Products and other classification master data
8 General record level attribute settings
9 Other configuration settings
Components of Precision Configuration
93
How is value created
Value is created by business actions that deliver on the essence of why the organization exists and how it thrives
Value manifests through increased profitability growth acquisitions job satisfaction fulfilment of the strategic vision
The consequence of intuitive intelligent informed leadership business decisions ndash thrive decisions
Such decisions are facilitated accelerated and enhanced through access to more intelligent meaningful and relevant information
Answers to the questions I have not yet thought to ask
Such ldquointelligent informationrdquo is assembled as a consequence of high level strategic and executive level input into the design of the data CONTENT ndash taxonomies designed to catalogue every conceivably relevant classification ahead of time
High value intelligent c
ontent desig
n
94
Some SMALL things YOU can doTo make your ERP work better for you TOMORROW
1 Repopulate key standard attribute tables
2 Create new custom attribute tables
95
Repopulate key standard attribute tables
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
Drastically im
prove the content o
f some
key tables s
uch as Credit N
ote Reasons
Product Ite
m Class etc
96
Develop lists
1 One to ten people in a room with a projector
2 Brainstorm all possible content for the list ndash capture on screen
3 Each summarize to between five and ten headings
4 Type all the lists in
5 Combine them into between five and ten groups
6 Give each group a heading
7 Lift out sub-categories
8 Code ndash remember indents trailing periods capitalization
9 Check impacts
10Implement
97
Develop lists 2
1 Quality of list is dependent on quality of input
2 Want lists to be complete comprehensive and well designed
3 Design compromises will be with you for ever
4 Document
5 Train
6 Utilize
98
Develop lists 3
1 Develop Hierarchy
a) Hierarchy of descriptions ndash indent each level by one character position
b) HEADINGS IN CAPITAL LETTERS
c) Posting level items in Proper Case
d) Abbreviate as necessary
2 Code
a) Mirror indents with trailing periods
b) Gap code
c) Mnemonic Alpha preferred else Alpha Numeric else Numeric
d) 1 to 4 character segments separated by ldquo-rdquo
99
Create new custom attribute tables
Add user defined attri
bute fields anywhere
where they m
ake sense ndash P
roducts
Debtors (Custo
mers) e
tc
100
Develop attributes
1 One to ten people in a room with a projector
2 Brainstorm all possible attributes for management information
3 If in doubt add
4 Structure and Code as before
5 Capture sheets
6 Train staff to classify and add
7 Reports
8 Identify clever functionality that can work with attributes add where cost effective
9 Harvest information
101
Unlocking the full potential
1 Progressively improve classifications and add attributes
2 Progressively develop reports analysis and custom functionality
3 Advance to more complex and inter-related lists
a) Product Item Material Class Group is the largest list that you might apply this approach to
b) Major Master Lists like Chart of Accounts and Product Catalogue Master might be done in increments ONCE you have experience with this approach
c) Other Master Lists like Debtors and Creditors Masters could be restructured in time
4 Eventually you might find you have effectively re-implemented
102
10 things to look out for
1 Ambiguous names incorrect postings ndash ANSWER ndash change the name so that it is unambiguous ndash eg Factory -- Operating Cost and Factory ndash Asset
2 Jumbled accounts and other lists ndash ANSWER ndashnew sub-structure
3 Large number of dissimilar transactions in one account having to unscramble in Excel ndash ANSWER ndash create a block of well thought out accounts to replace the single account
4 Overlapping or duplicate entries ndash eg same Tyres in different places ndash ANSWER ndash close duplicates only one set of entries ndash may close both and open a new set of well-structured entries
5 Answers to ldquocommon senserdquo questions take ages to obtain ndash lots of analysis in Excel or custom software that keeps changing ndash check if all the common sense attributes are on the master record and add as necessary ndash as many as possible ndash once you start adding do the lot
103
10 things to look out for
6 Evaluate all manual spreadsheet and custom applications and determine where these are a response to inexact or sloppy configuration and progressively adjust or eliminate
7 Develop a comprehensive awareness of the need for accurate data train personnel in terms of neatness accuracy spelling capitalization accuracy of allocation etc
8 Develop soft-issue metrics ndash customer satisfaction employee satisfaction etc
9 Harmonize critical elements of information classification ndash Accounts Assets People Products ndash across all modules and all systems ndash develop an integrated environment especially between the ERP and the Operational Systems
10Balance the decision support load between modules ndash move the detail out of the General Ledger ndash 5 to 10 Asset Categories People Categories Inventory Categories etc
104
Summing up
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Some items require a very small investment ndash an ART and a science
5 A significant opportunity to get more out of your current systems
Better DECISIONS
105
What is your single most important insight from this presentation
What is the single most practical action that you can take tomorrow to apply strategic (right thing essence thinking more effectively
JamesJamesARobertsoncom
Please write down
your thoughts
NOW
If you do not act within 48 hours you probably never will (Bill Gates)
Act TODAY
106
Assisting clients to thrive through the effective application of IT and ERP
QuestionsWe will email you my book and hand-outs of slides
Dr James Robertson PrEng ndash The ERP Doctor -- Mobile +44 (0) 77 6862 2875 +27 (0)83 251 6644wwwJames-A-Robertson-and-Associatescom
JamesJamesARobertsoncom
LinkedIn httpukLinkedIncominDrJamesARobertsonERPDoctor
JARampA are available to assist in applying these principles
93
How is value created
Value is created by business actions that deliver on the essence of why the organization exists and how it thrives
Value manifests through increased profitability growth acquisitions job satisfaction fulfilment of the strategic vision
The consequence of intuitive intelligent informed leadership business decisions ndash thrive decisions
Such decisions are facilitated accelerated and enhanced through access to more intelligent meaningful and relevant information
Answers to the questions I have not yet thought to ask
Such ldquointelligent informationrdquo is assembled as a consequence of high level strategic and executive level input into the design of the data CONTENT ndash taxonomies designed to catalogue every conceivably relevant classification ahead of time
High value intelligent c
ontent desig
n
94
Some SMALL things YOU can doTo make your ERP work better for you TOMORROW
1 Repopulate key standard attribute tables
2 Create new custom attribute tables
95
Repopulate key standard attribute tables
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
Drastically im
prove the content o
f some
key tables s
uch as Credit N
ote Reasons
Product Ite
m Class etc
96
Develop lists
1 One to ten people in a room with a projector
2 Brainstorm all possible content for the list ndash capture on screen
3 Each summarize to between five and ten headings
4 Type all the lists in
5 Combine them into between five and ten groups
6 Give each group a heading
7 Lift out sub-categories
8 Code ndash remember indents trailing periods capitalization
9 Check impacts
10Implement
97
Develop lists 2
1 Quality of list is dependent on quality of input
2 Want lists to be complete comprehensive and well designed
3 Design compromises will be with you for ever
4 Document
5 Train
6 Utilize
98
Develop lists 3
1 Develop Hierarchy
a) Hierarchy of descriptions ndash indent each level by one character position
b) HEADINGS IN CAPITAL LETTERS
c) Posting level items in Proper Case
d) Abbreviate as necessary
2 Code
a) Mirror indents with trailing periods
b) Gap code
c) Mnemonic Alpha preferred else Alpha Numeric else Numeric
d) 1 to 4 character segments separated by ldquo-rdquo
99
Create new custom attribute tables
Add user defined attri
bute fields anywhere
where they m
ake sense ndash P
roducts
Debtors (Custo
mers) e
tc
100
Develop attributes
1 One to ten people in a room with a projector
2 Brainstorm all possible attributes for management information
3 If in doubt add
4 Structure and Code as before
5 Capture sheets
6 Train staff to classify and add
7 Reports
8 Identify clever functionality that can work with attributes add where cost effective
9 Harvest information
101
Unlocking the full potential
1 Progressively improve classifications and add attributes
2 Progressively develop reports analysis and custom functionality
3 Advance to more complex and inter-related lists
a) Product Item Material Class Group is the largest list that you might apply this approach to
b) Major Master Lists like Chart of Accounts and Product Catalogue Master might be done in increments ONCE you have experience with this approach
c) Other Master Lists like Debtors and Creditors Masters could be restructured in time
4 Eventually you might find you have effectively re-implemented
102
10 things to look out for
1 Ambiguous names incorrect postings ndash ANSWER ndash change the name so that it is unambiguous ndash eg Factory -- Operating Cost and Factory ndash Asset
2 Jumbled accounts and other lists ndash ANSWER ndashnew sub-structure
3 Large number of dissimilar transactions in one account having to unscramble in Excel ndash ANSWER ndash create a block of well thought out accounts to replace the single account
4 Overlapping or duplicate entries ndash eg same Tyres in different places ndash ANSWER ndash close duplicates only one set of entries ndash may close both and open a new set of well-structured entries
5 Answers to ldquocommon senserdquo questions take ages to obtain ndash lots of analysis in Excel or custom software that keeps changing ndash check if all the common sense attributes are on the master record and add as necessary ndash as many as possible ndash once you start adding do the lot
103
10 things to look out for
6 Evaluate all manual spreadsheet and custom applications and determine where these are a response to inexact or sloppy configuration and progressively adjust or eliminate
7 Develop a comprehensive awareness of the need for accurate data train personnel in terms of neatness accuracy spelling capitalization accuracy of allocation etc
8 Develop soft-issue metrics ndash customer satisfaction employee satisfaction etc
9 Harmonize critical elements of information classification ndash Accounts Assets People Products ndash across all modules and all systems ndash develop an integrated environment especially between the ERP and the Operational Systems
10Balance the decision support load between modules ndash move the detail out of the General Ledger ndash 5 to 10 Asset Categories People Categories Inventory Categories etc
104
Summing up
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Some items require a very small investment ndash an ART and a science
5 A significant opportunity to get more out of your current systems
Better DECISIONS
105
What is your single most important insight from this presentation
What is the single most practical action that you can take tomorrow to apply strategic (right thing essence thinking more effectively
JamesJamesARobertsoncom
Please write down
your thoughts
NOW
If you do not act within 48 hours you probably never will (Bill Gates)
Act TODAY
106
Assisting clients to thrive through the effective application of IT and ERP
QuestionsWe will email you my book and hand-outs of slides
Dr James Robertson PrEng ndash The ERP Doctor -- Mobile +44 (0) 77 6862 2875 +27 (0)83 251 6644wwwJames-A-Robertson-and-Associatescom
JamesJamesARobertsoncom
LinkedIn httpukLinkedIncominDrJamesARobertsonERPDoctor
JARampA are available to assist in applying these principles
94
Some SMALL things YOU can doTo make your ERP work better for you TOMORROW
1 Repopulate key standard attribute tables
2 Create new custom attribute tables
95
Repopulate key standard attribute tables
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
Drastically im
prove the content o
f some
key tables s
uch as Credit N
ote Reasons
Product Ite
m Class etc
96
Develop lists
1 One to ten people in a room with a projector
2 Brainstorm all possible content for the list ndash capture on screen
3 Each summarize to between five and ten headings
4 Type all the lists in
5 Combine them into between five and ten groups
6 Give each group a heading
7 Lift out sub-categories
8 Code ndash remember indents trailing periods capitalization
9 Check impacts
10Implement
97
Develop lists 2
1 Quality of list is dependent on quality of input
2 Want lists to be complete comprehensive and well designed
3 Design compromises will be with you for ever
4 Document
5 Train
6 Utilize
98
Develop lists 3
1 Develop Hierarchy
a) Hierarchy of descriptions ndash indent each level by one character position
b) HEADINGS IN CAPITAL LETTERS
c) Posting level items in Proper Case
d) Abbreviate as necessary
2 Code
a) Mirror indents with trailing periods
b) Gap code
c) Mnemonic Alpha preferred else Alpha Numeric else Numeric
d) 1 to 4 character segments separated by ldquo-rdquo
99
Create new custom attribute tables
Add user defined attri
bute fields anywhere
where they m
ake sense ndash P
roducts
Debtors (Custo
mers) e
tc
100
Develop attributes
1 One to ten people in a room with a projector
2 Brainstorm all possible attributes for management information
3 If in doubt add
4 Structure and Code as before
5 Capture sheets
6 Train staff to classify and add
7 Reports
8 Identify clever functionality that can work with attributes add where cost effective
9 Harvest information
101
Unlocking the full potential
1 Progressively improve classifications and add attributes
2 Progressively develop reports analysis and custom functionality
3 Advance to more complex and inter-related lists
a) Product Item Material Class Group is the largest list that you might apply this approach to
b) Major Master Lists like Chart of Accounts and Product Catalogue Master might be done in increments ONCE you have experience with this approach
c) Other Master Lists like Debtors and Creditors Masters could be restructured in time
4 Eventually you might find you have effectively re-implemented
102
10 things to look out for
1 Ambiguous names incorrect postings ndash ANSWER ndash change the name so that it is unambiguous ndash eg Factory -- Operating Cost and Factory ndash Asset
2 Jumbled accounts and other lists ndash ANSWER ndashnew sub-structure
3 Large number of dissimilar transactions in one account having to unscramble in Excel ndash ANSWER ndash create a block of well thought out accounts to replace the single account
4 Overlapping or duplicate entries ndash eg same Tyres in different places ndash ANSWER ndash close duplicates only one set of entries ndash may close both and open a new set of well-structured entries
5 Answers to ldquocommon senserdquo questions take ages to obtain ndash lots of analysis in Excel or custom software that keeps changing ndash check if all the common sense attributes are on the master record and add as necessary ndash as many as possible ndash once you start adding do the lot
103
10 things to look out for
6 Evaluate all manual spreadsheet and custom applications and determine where these are a response to inexact or sloppy configuration and progressively adjust or eliminate
7 Develop a comprehensive awareness of the need for accurate data train personnel in terms of neatness accuracy spelling capitalization accuracy of allocation etc
8 Develop soft-issue metrics ndash customer satisfaction employee satisfaction etc
9 Harmonize critical elements of information classification ndash Accounts Assets People Products ndash across all modules and all systems ndash develop an integrated environment especially between the ERP and the Operational Systems
10Balance the decision support load between modules ndash move the detail out of the General Ledger ndash 5 to 10 Asset Categories People Categories Inventory Categories etc
104
Summing up
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Some items require a very small investment ndash an ART and a science
5 A significant opportunity to get more out of your current systems
Better DECISIONS
105
What is your single most important insight from this presentation
What is the single most practical action that you can take tomorrow to apply strategic (right thing essence thinking more effectively
JamesJamesARobertsoncom
Please write down
your thoughts
NOW
If you do not act within 48 hours you probably never will (Bill Gates)
Act TODAY
106
Assisting clients to thrive through the effective application of IT and ERP
QuestionsWe will email you my book and hand-outs of slides
Dr James Robertson PrEng ndash The ERP Doctor -- Mobile +44 (0) 77 6862 2875 +27 (0)83 251 6644wwwJames-A-Robertson-and-Associatescom
JamesJamesARobertsoncom
LinkedIn httpukLinkedIncominDrJamesARobertsonERPDoctor
JARampA are available to assist in applying these principles
95
Repopulate key standard attribute tables
Example of poor credit note reason codes ndash actual case
Strategically aligned credit note reason codes
Drastically im
prove the content o
f some
key tables s
uch as Credit N
ote Reasons
Product Ite
m Class etc
96
Develop lists
1 One to ten people in a room with a projector
2 Brainstorm all possible content for the list ndash capture on screen
3 Each summarize to between five and ten headings
4 Type all the lists in
5 Combine them into between five and ten groups
6 Give each group a heading
7 Lift out sub-categories
8 Code ndash remember indents trailing periods capitalization
9 Check impacts
10Implement
97
Develop lists 2
1 Quality of list is dependent on quality of input
2 Want lists to be complete comprehensive and well designed
3 Design compromises will be with you for ever
4 Document
5 Train
6 Utilize
98
Develop lists 3
1 Develop Hierarchy
a) Hierarchy of descriptions ndash indent each level by one character position
b) HEADINGS IN CAPITAL LETTERS
c) Posting level items in Proper Case
d) Abbreviate as necessary
2 Code
a) Mirror indents with trailing periods
b) Gap code
c) Mnemonic Alpha preferred else Alpha Numeric else Numeric
d) 1 to 4 character segments separated by ldquo-rdquo
99
Create new custom attribute tables
Add user defined attri
bute fields anywhere
where they m
ake sense ndash P
roducts
Debtors (Custo
mers) e
tc
100
Develop attributes
1 One to ten people in a room with a projector
2 Brainstorm all possible attributes for management information
3 If in doubt add
4 Structure and Code as before
5 Capture sheets
6 Train staff to classify and add
7 Reports
8 Identify clever functionality that can work with attributes add where cost effective
9 Harvest information
101
Unlocking the full potential
1 Progressively improve classifications and add attributes
2 Progressively develop reports analysis and custom functionality
3 Advance to more complex and inter-related lists
a) Product Item Material Class Group is the largest list that you might apply this approach to
b) Major Master Lists like Chart of Accounts and Product Catalogue Master might be done in increments ONCE you have experience with this approach
c) Other Master Lists like Debtors and Creditors Masters could be restructured in time
4 Eventually you might find you have effectively re-implemented
102
10 things to look out for
1 Ambiguous names incorrect postings ndash ANSWER ndash change the name so that it is unambiguous ndash eg Factory -- Operating Cost and Factory ndash Asset
2 Jumbled accounts and other lists ndash ANSWER ndashnew sub-structure
3 Large number of dissimilar transactions in one account having to unscramble in Excel ndash ANSWER ndash create a block of well thought out accounts to replace the single account
4 Overlapping or duplicate entries ndash eg same Tyres in different places ndash ANSWER ndash close duplicates only one set of entries ndash may close both and open a new set of well-structured entries
5 Answers to ldquocommon senserdquo questions take ages to obtain ndash lots of analysis in Excel or custom software that keeps changing ndash check if all the common sense attributes are on the master record and add as necessary ndash as many as possible ndash once you start adding do the lot
103
10 things to look out for
6 Evaluate all manual spreadsheet and custom applications and determine where these are a response to inexact or sloppy configuration and progressively adjust or eliminate
7 Develop a comprehensive awareness of the need for accurate data train personnel in terms of neatness accuracy spelling capitalization accuracy of allocation etc
8 Develop soft-issue metrics ndash customer satisfaction employee satisfaction etc
9 Harmonize critical elements of information classification ndash Accounts Assets People Products ndash across all modules and all systems ndash develop an integrated environment especially between the ERP and the Operational Systems
10Balance the decision support load between modules ndash move the detail out of the General Ledger ndash 5 to 10 Asset Categories People Categories Inventory Categories etc
104
Summing up
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Some items require a very small investment ndash an ART and a science
5 A significant opportunity to get more out of your current systems
Better DECISIONS
105
What is your single most important insight from this presentation
What is the single most practical action that you can take tomorrow to apply strategic (right thing essence thinking more effectively
JamesJamesARobertsoncom
Please write down
your thoughts
NOW
If you do not act within 48 hours you probably never will (Bill Gates)
Act TODAY
106
Assisting clients to thrive through the effective application of IT and ERP
QuestionsWe will email you my book and hand-outs of slides
Dr James Robertson PrEng ndash The ERP Doctor -- Mobile +44 (0) 77 6862 2875 +27 (0)83 251 6644wwwJames-A-Robertson-and-Associatescom
JamesJamesARobertsoncom
LinkedIn httpukLinkedIncominDrJamesARobertsonERPDoctor
JARampA are available to assist in applying these principles
96
Develop lists
1 One to ten people in a room with a projector
2 Brainstorm all possible content for the list ndash capture on screen
3 Each summarize to between five and ten headings
4 Type all the lists in
5 Combine them into between five and ten groups
6 Give each group a heading
7 Lift out sub-categories
8 Code ndash remember indents trailing periods capitalization
9 Check impacts
10Implement
97
Develop lists 2
1 Quality of list is dependent on quality of input
2 Want lists to be complete comprehensive and well designed
3 Design compromises will be with you for ever
4 Document
5 Train
6 Utilize
98
Develop lists 3
1 Develop Hierarchy
a) Hierarchy of descriptions ndash indent each level by one character position
b) HEADINGS IN CAPITAL LETTERS
c) Posting level items in Proper Case
d) Abbreviate as necessary
2 Code
a) Mirror indents with trailing periods
b) Gap code
c) Mnemonic Alpha preferred else Alpha Numeric else Numeric
d) 1 to 4 character segments separated by ldquo-rdquo
99
Create new custom attribute tables
Add user defined attri
bute fields anywhere
where they m
ake sense ndash P
roducts
Debtors (Custo
mers) e
tc
100
Develop attributes
1 One to ten people in a room with a projector
2 Brainstorm all possible attributes for management information
3 If in doubt add
4 Structure and Code as before
5 Capture sheets
6 Train staff to classify and add
7 Reports
8 Identify clever functionality that can work with attributes add where cost effective
9 Harvest information
101
Unlocking the full potential
1 Progressively improve classifications and add attributes
2 Progressively develop reports analysis and custom functionality
3 Advance to more complex and inter-related lists
a) Product Item Material Class Group is the largest list that you might apply this approach to
b) Major Master Lists like Chart of Accounts and Product Catalogue Master might be done in increments ONCE you have experience with this approach
c) Other Master Lists like Debtors and Creditors Masters could be restructured in time
4 Eventually you might find you have effectively re-implemented
102
10 things to look out for
1 Ambiguous names incorrect postings ndash ANSWER ndash change the name so that it is unambiguous ndash eg Factory -- Operating Cost and Factory ndash Asset
2 Jumbled accounts and other lists ndash ANSWER ndashnew sub-structure
3 Large number of dissimilar transactions in one account having to unscramble in Excel ndash ANSWER ndash create a block of well thought out accounts to replace the single account
4 Overlapping or duplicate entries ndash eg same Tyres in different places ndash ANSWER ndash close duplicates only one set of entries ndash may close both and open a new set of well-structured entries
5 Answers to ldquocommon senserdquo questions take ages to obtain ndash lots of analysis in Excel or custom software that keeps changing ndash check if all the common sense attributes are on the master record and add as necessary ndash as many as possible ndash once you start adding do the lot
103
10 things to look out for
6 Evaluate all manual spreadsheet and custom applications and determine where these are a response to inexact or sloppy configuration and progressively adjust or eliminate
7 Develop a comprehensive awareness of the need for accurate data train personnel in terms of neatness accuracy spelling capitalization accuracy of allocation etc
8 Develop soft-issue metrics ndash customer satisfaction employee satisfaction etc
9 Harmonize critical elements of information classification ndash Accounts Assets People Products ndash across all modules and all systems ndash develop an integrated environment especially between the ERP and the Operational Systems
10Balance the decision support load between modules ndash move the detail out of the General Ledger ndash 5 to 10 Asset Categories People Categories Inventory Categories etc
104
Summing up
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Some items require a very small investment ndash an ART and a science
5 A significant opportunity to get more out of your current systems
Better DECISIONS
105
What is your single most important insight from this presentation
What is the single most practical action that you can take tomorrow to apply strategic (right thing essence thinking more effectively
JamesJamesARobertsoncom
Please write down
your thoughts
NOW
If you do not act within 48 hours you probably never will (Bill Gates)
Act TODAY
106
Assisting clients to thrive through the effective application of IT and ERP
QuestionsWe will email you my book and hand-outs of slides
Dr James Robertson PrEng ndash The ERP Doctor -- Mobile +44 (0) 77 6862 2875 +27 (0)83 251 6644wwwJames-A-Robertson-and-Associatescom
JamesJamesARobertsoncom
LinkedIn httpukLinkedIncominDrJamesARobertsonERPDoctor
JARampA are available to assist in applying these principles
97
Develop lists 2
1 Quality of list is dependent on quality of input
2 Want lists to be complete comprehensive and well designed
3 Design compromises will be with you for ever
4 Document
5 Train
6 Utilize
98
Develop lists 3
1 Develop Hierarchy
a) Hierarchy of descriptions ndash indent each level by one character position
b) HEADINGS IN CAPITAL LETTERS
c) Posting level items in Proper Case
d) Abbreviate as necessary
2 Code
a) Mirror indents with trailing periods
b) Gap code
c) Mnemonic Alpha preferred else Alpha Numeric else Numeric
d) 1 to 4 character segments separated by ldquo-rdquo
99
Create new custom attribute tables
Add user defined attri
bute fields anywhere
where they m
ake sense ndash P
roducts
Debtors (Custo
mers) e
tc
100
Develop attributes
1 One to ten people in a room with a projector
2 Brainstorm all possible attributes for management information
3 If in doubt add
4 Structure and Code as before
5 Capture sheets
6 Train staff to classify and add
7 Reports
8 Identify clever functionality that can work with attributes add where cost effective
9 Harvest information
101
Unlocking the full potential
1 Progressively improve classifications and add attributes
2 Progressively develop reports analysis and custom functionality
3 Advance to more complex and inter-related lists
a) Product Item Material Class Group is the largest list that you might apply this approach to
b) Major Master Lists like Chart of Accounts and Product Catalogue Master might be done in increments ONCE you have experience with this approach
c) Other Master Lists like Debtors and Creditors Masters could be restructured in time
4 Eventually you might find you have effectively re-implemented
102
10 things to look out for
1 Ambiguous names incorrect postings ndash ANSWER ndash change the name so that it is unambiguous ndash eg Factory -- Operating Cost and Factory ndash Asset
2 Jumbled accounts and other lists ndash ANSWER ndashnew sub-structure
3 Large number of dissimilar transactions in one account having to unscramble in Excel ndash ANSWER ndash create a block of well thought out accounts to replace the single account
4 Overlapping or duplicate entries ndash eg same Tyres in different places ndash ANSWER ndash close duplicates only one set of entries ndash may close both and open a new set of well-structured entries
5 Answers to ldquocommon senserdquo questions take ages to obtain ndash lots of analysis in Excel or custom software that keeps changing ndash check if all the common sense attributes are on the master record and add as necessary ndash as many as possible ndash once you start adding do the lot
103
10 things to look out for
6 Evaluate all manual spreadsheet and custom applications and determine where these are a response to inexact or sloppy configuration and progressively adjust or eliminate
7 Develop a comprehensive awareness of the need for accurate data train personnel in terms of neatness accuracy spelling capitalization accuracy of allocation etc
8 Develop soft-issue metrics ndash customer satisfaction employee satisfaction etc
9 Harmonize critical elements of information classification ndash Accounts Assets People Products ndash across all modules and all systems ndash develop an integrated environment especially between the ERP and the Operational Systems
10Balance the decision support load between modules ndash move the detail out of the General Ledger ndash 5 to 10 Asset Categories People Categories Inventory Categories etc
104
Summing up
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Some items require a very small investment ndash an ART and a science
5 A significant opportunity to get more out of your current systems
Better DECISIONS
105
What is your single most important insight from this presentation
What is the single most practical action that you can take tomorrow to apply strategic (right thing essence thinking more effectively
JamesJamesARobertsoncom
Please write down
your thoughts
NOW
If you do not act within 48 hours you probably never will (Bill Gates)
Act TODAY
106
Assisting clients to thrive through the effective application of IT and ERP
QuestionsWe will email you my book and hand-outs of slides
Dr James Robertson PrEng ndash The ERP Doctor -- Mobile +44 (0) 77 6862 2875 +27 (0)83 251 6644wwwJames-A-Robertson-and-Associatescom
JamesJamesARobertsoncom
LinkedIn httpukLinkedIncominDrJamesARobertsonERPDoctor
JARampA are available to assist in applying these principles
98
Develop lists 3
1 Develop Hierarchy
a) Hierarchy of descriptions ndash indent each level by one character position
b) HEADINGS IN CAPITAL LETTERS
c) Posting level items in Proper Case
d) Abbreviate as necessary
2 Code
a) Mirror indents with trailing periods
b) Gap code
c) Mnemonic Alpha preferred else Alpha Numeric else Numeric
d) 1 to 4 character segments separated by ldquo-rdquo
99
Create new custom attribute tables
Add user defined attri
bute fields anywhere
where they m
ake sense ndash P
roducts
Debtors (Custo
mers) e
tc
100
Develop attributes
1 One to ten people in a room with a projector
2 Brainstorm all possible attributes for management information
3 If in doubt add
4 Structure and Code as before
5 Capture sheets
6 Train staff to classify and add
7 Reports
8 Identify clever functionality that can work with attributes add where cost effective
9 Harvest information
101
Unlocking the full potential
1 Progressively improve classifications and add attributes
2 Progressively develop reports analysis and custom functionality
3 Advance to more complex and inter-related lists
a) Product Item Material Class Group is the largest list that you might apply this approach to
b) Major Master Lists like Chart of Accounts and Product Catalogue Master might be done in increments ONCE you have experience with this approach
c) Other Master Lists like Debtors and Creditors Masters could be restructured in time
4 Eventually you might find you have effectively re-implemented
102
10 things to look out for
1 Ambiguous names incorrect postings ndash ANSWER ndash change the name so that it is unambiguous ndash eg Factory -- Operating Cost and Factory ndash Asset
2 Jumbled accounts and other lists ndash ANSWER ndashnew sub-structure
3 Large number of dissimilar transactions in one account having to unscramble in Excel ndash ANSWER ndash create a block of well thought out accounts to replace the single account
4 Overlapping or duplicate entries ndash eg same Tyres in different places ndash ANSWER ndash close duplicates only one set of entries ndash may close both and open a new set of well-structured entries
5 Answers to ldquocommon senserdquo questions take ages to obtain ndash lots of analysis in Excel or custom software that keeps changing ndash check if all the common sense attributes are on the master record and add as necessary ndash as many as possible ndash once you start adding do the lot
103
10 things to look out for
6 Evaluate all manual spreadsheet and custom applications and determine where these are a response to inexact or sloppy configuration and progressively adjust or eliminate
7 Develop a comprehensive awareness of the need for accurate data train personnel in terms of neatness accuracy spelling capitalization accuracy of allocation etc
8 Develop soft-issue metrics ndash customer satisfaction employee satisfaction etc
9 Harmonize critical elements of information classification ndash Accounts Assets People Products ndash across all modules and all systems ndash develop an integrated environment especially between the ERP and the Operational Systems
10Balance the decision support load between modules ndash move the detail out of the General Ledger ndash 5 to 10 Asset Categories People Categories Inventory Categories etc
104
Summing up
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Some items require a very small investment ndash an ART and a science
5 A significant opportunity to get more out of your current systems
Better DECISIONS
105
What is your single most important insight from this presentation
What is the single most practical action that you can take tomorrow to apply strategic (right thing essence thinking more effectively
JamesJamesARobertsoncom
Please write down
your thoughts
NOW
If you do not act within 48 hours you probably never will (Bill Gates)
Act TODAY
106
Assisting clients to thrive through the effective application of IT and ERP
QuestionsWe will email you my book and hand-outs of slides
Dr James Robertson PrEng ndash The ERP Doctor -- Mobile +44 (0) 77 6862 2875 +27 (0)83 251 6644wwwJames-A-Robertson-and-Associatescom
JamesJamesARobertsoncom
LinkedIn httpukLinkedIncominDrJamesARobertsonERPDoctor
JARampA are available to assist in applying these principles
99
Create new custom attribute tables
Add user defined attri
bute fields anywhere
where they m
ake sense ndash P
roducts
Debtors (Custo
mers) e
tc
100
Develop attributes
1 One to ten people in a room with a projector
2 Brainstorm all possible attributes for management information
3 If in doubt add
4 Structure and Code as before
5 Capture sheets
6 Train staff to classify and add
7 Reports
8 Identify clever functionality that can work with attributes add where cost effective
9 Harvest information
101
Unlocking the full potential
1 Progressively improve classifications and add attributes
2 Progressively develop reports analysis and custom functionality
3 Advance to more complex and inter-related lists
a) Product Item Material Class Group is the largest list that you might apply this approach to
b) Major Master Lists like Chart of Accounts and Product Catalogue Master might be done in increments ONCE you have experience with this approach
c) Other Master Lists like Debtors and Creditors Masters could be restructured in time
4 Eventually you might find you have effectively re-implemented
102
10 things to look out for
1 Ambiguous names incorrect postings ndash ANSWER ndash change the name so that it is unambiguous ndash eg Factory -- Operating Cost and Factory ndash Asset
2 Jumbled accounts and other lists ndash ANSWER ndashnew sub-structure
3 Large number of dissimilar transactions in one account having to unscramble in Excel ndash ANSWER ndash create a block of well thought out accounts to replace the single account
4 Overlapping or duplicate entries ndash eg same Tyres in different places ndash ANSWER ndash close duplicates only one set of entries ndash may close both and open a new set of well-structured entries
5 Answers to ldquocommon senserdquo questions take ages to obtain ndash lots of analysis in Excel or custom software that keeps changing ndash check if all the common sense attributes are on the master record and add as necessary ndash as many as possible ndash once you start adding do the lot
103
10 things to look out for
6 Evaluate all manual spreadsheet and custom applications and determine where these are a response to inexact or sloppy configuration and progressively adjust or eliminate
7 Develop a comprehensive awareness of the need for accurate data train personnel in terms of neatness accuracy spelling capitalization accuracy of allocation etc
8 Develop soft-issue metrics ndash customer satisfaction employee satisfaction etc
9 Harmonize critical elements of information classification ndash Accounts Assets People Products ndash across all modules and all systems ndash develop an integrated environment especially between the ERP and the Operational Systems
10Balance the decision support load between modules ndash move the detail out of the General Ledger ndash 5 to 10 Asset Categories People Categories Inventory Categories etc
104
Summing up
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Some items require a very small investment ndash an ART and a science
5 A significant opportunity to get more out of your current systems
Better DECISIONS
105
What is your single most important insight from this presentation
What is the single most practical action that you can take tomorrow to apply strategic (right thing essence thinking more effectively
JamesJamesARobertsoncom
Please write down
your thoughts
NOW
If you do not act within 48 hours you probably never will (Bill Gates)
Act TODAY
106
Assisting clients to thrive through the effective application of IT and ERP
QuestionsWe will email you my book and hand-outs of slides
Dr James Robertson PrEng ndash The ERP Doctor -- Mobile +44 (0) 77 6862 2875 +27 (0)83 251 6644wwwJames-A-Robertson-and-Associatescom
JamesJamesARobertsoncom
LinkedIn httpukLinkedIncominDrJamesARobertsonERPDoctor
JARampA are available to assist in applying these principles
100
Develop attributes
1 One to ten people in a room with a projector
2 Brainstorm all possible attributes for management information
3 If in doubt add
4 Structure and Code as before
5 Capture sheets
6 Train staff to classify and add
7 Reports
8 Identify clever functionality that can work with attributes add where cost effective
9 Harvest information
101
Unlocking the full potential
1 Progressively improve classifications and add attributes
2 Progressively develop reports analysis and custom functionality
3 Advance to more complex and inter-related lists
a) Product Item Material Class Group is the largest list that you might apply this approach to
b) Major Master Lists like Chart of Accounts and Product Catalogue Master might be done in increments ONCE you have experience with this approach
c) Other Master Lists like Debtors and Creditors Masters could be restructured in time
4 Eventually you might find you have effectively re-implemented
102
10 things to look out for
1 Ambiguous names incorrect postings ndash ANSWER ndash change the name so that it is unambiguous ndash eg Factory -- Operating Cost and Factory ndash Asset
2 Jumbled accounts and other lists ndash ANSWER ndashnew sub-structure
3 Large number of dissimilar transactions in one account having to unscramble in Excel ndash ANSWER ndash create a block of well thought out accounts to replace the single account
4 Overlapping or duplicate entries ndash eg same Tyres in different places ndash ANSWER ndash close duplicates only one set of entries ndash may close both and open a new set of well-structured entries
5 Answers to ldquocommon senserdquo questions take ages to obtain ndash lots of analysis in Excel or custom software that keeps changing ndash check if all the common sense attributes are on the master record and add as necessary ndash as many as possible ndash once you start adding do the lot
103
10 things to look out for
6 Evaluate all manual spreadsheet and custom applications and determine where these are a response to inexact or sloppy configuration and progressively adjust or eliminate
7 Develop a comprehensive awareness of the need for accurate data train personnel in terms of neatness accuracy spelling capitalization accuracy of allocation etc
8 Develop soft-issue metrics ndash customer satisfaction employee satisfaction etc
9 Harmonize critical elements of information classification ndash Accounts Assets People Products ndash across all modules and all systems ndash develop an integrated environment especially between the ERP and the Operational Systems
10Balance the decision support load between modules ndash move the detail out of the General Ledger ndash 5 to 10 Asset Categories People Categories Inventory Categories etc
104
Summing up
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Some items require a very small investment ndash an ART and a science
5 A significant opportunity to get more out of your current systems
Better DECISIONS
105
What is your single most important insight from this presentation
What is the single most practical action that you can take tomorrow to apply strategic (right thing essence thinking more effectively
JamesJamesARobertsoncom
Please write down
your thoughts
NOW
If you do not act within 48 hours you probably never will (Bill Gates)
Act TODAY
106
Assisting clients to thrive through the effective application of IT and ERP
QuestionsWe will email you my book and hand-outs of slides
Dr James Robertson PrEng ndash The ERP Doctor -- Mobile +44 (0) 77 6862 2875 +27 (0)83 251 6644wwwJames-A-Robertson-and-Associatescom
JamesJamesARobertsoncom
LinkedIn httpukLinkedIncominDrJamesARobertsonERPDoctor
JARampA are available to assist in applying these principles
101
Unlocking the full potential
1 Progressively improve classifications and add attributes
2 Progressively develop reports analysis and custom functionality
3 Advance to more complex and inter-related lists
a) Product Item Material Class Group is the largest list that you might apply this approach to
b) Major Master Lists like Chart of Accounts and Product Catalogue Master might be done in increments ONCE you have experience with this approach
c) Other Master Lists like Debtors and Creditors Masters could be restructured in time
4 Eventually you might find you have effectively re-implemented
102
10 things to look out for
1 Ambiguous names incorrect postings ndash ANSWER ndash change the name so that it is unambiguous ndash eg Factory -- Operating Cost and Factory ndash Asset
2 Jumbled accounts and other lists ndash ANSWER ndashnew sub-structure
3 Large number of dissimilar transactions in one account having to unscramble in Excel ndash ANSWER ndash create a block of well thought out accounts to replace the single account
4 Overlapping or duplicate entries ndash eg same Tyres in different places ndash ANSWER ndash close duplicates only one set of entries ndash may close both and open a new set of well-structured entries
5 Answers to ldquocommon senserdquo questions take ages to obtain ndash lots of analysis in Excel or custom software that keeps changing ndash check if all the common sense attributes are on the master record and add as necessary ndash as many as possible ndash once you start adding do the lot
103
10 things to look out for
6 Evaluate all manual spreadsheet and custom applications and determine where these are a response to inexact or sloppy configuration and progressively adjust or eliminate
7 Develop a comprehensive awareness of the need for accurate data train personnel in terms of neatness accuracy spelling capitalization accuracy of allocation etc
8 Develop soft-issue metrics ndash customer satisfaction employee satisfaction etc
9 Harmonize critical elements of information classification ndash Accounts Assets People Products ndash across all modules and all systems ndash develop an integrated environment especially between the ERP and the Operational Systems
10Balance the decision support load between modules ndash move the detail out of the General Ledger ndash 5 to 10 Asset Categories People Categories Inventory Categories etc
104
Summing up
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Some items require a very small investment ndash an ART and a science
5 A significant opportunity to get more out of your current systems
Better DECISIONS
105
What is your single most important insight from this presentation
What is the single most practical action that you can take tomorrow to apply strategic (right thing essence thinking more effectively
JamesJamesARobertsoncom
Please write down
your thoughts
NOW
If you do not act within 48 hours you probably never will (Bill Gates)
Act TODAY
106
Assisting clients to thrive through the effective application of IT and ERP
QuestionsWe will email you my book and hand-outs of slides
Dr James Robertson PrEng ndash The ERP Doctor -- Mobile +44 (0) 77 6862 2875 +27 (0)83 251 6644wwwJames-A-Robertson-and-Associatescom
JamesJamesARobertsoncom
LinkedIn httpukLinkedIncominDrJamesARobertsonERPDoctor
JARampA are available to assist in applying these principles
102
10 things to look out for
1 Ambiguous names incorrect postings ndash ANSWER ndash change the name so that it is unambiguous ndash eg Factory -- Operating Cost and Factory ndash Asset
2 Jumbled accounts and other lists ndash ANSWER ndashnew sub-structure
3 Large number of dissimilar transactions in one account having to unscramble in Excel ndash ANSWER ndash create a block of well thought out accounts to replace the single account
4 Overlapping or duplicate entries ndash eg same Tyres in different places ndash ANSWER ndash close duplicates only one set of entries ndash may close both and open a new set of well-structured entries
5 Answers to ldquocommon senserdquo questions take ages to obtain ndash lots of analysis in Excel or custom software that keeps changing ndash check if all the common sense attributes are on the master record and add as necessary ndash as many as possible ndash once you start adding do the lot
103
10 things to look out for
6 Evaluate all manual spreadsheet and custom applications and determine where these are a response to inexact or sloppy configuration and progressively adjust or eliminate
7 Develop a comprehensive awareness of the need for accurate data train personnel in terms of neatness accuracy spelling capitalization accuracy of allocation etc
8 Develop soft-issue metrics ndash customer satisfaction employee satisfaction etc
9 Harmonize critical elements of information classification ndash Accounts Assets People Products ndash across all modules and all systems ndash develop an integrated environment especially between the ERP and the Operational Systems
10Balance the decision support load between modules ndash move the detail out of the General Ledger ndash 5 to 10 Asset Categories People Categories Inventory Categories etc
104
Summing up
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Some items require a very small investment ndash an ART and a science
5 A significant opportunity to get more out of your current systems
Better DECISIONS
105
What is your single most important insight from this presentation
What is the single most practical action that you can take tomorrow to apply strategic (right thing essence thinking more effectively
JamesJamesARobertsoncom
Please write down
your thoughts
NOW
If you do not act within 48 hours you probably never will (Bill Gates)
Act TODAY
106
Assisting clients to thrive through the effective application of IT and ERP
QuestionsWe will email you my book and hand-outs of slides
Dr James Robertson PrEng ndash The ERP Doctor -- Mobile +44 (0) 77 6862 2875 +27 (0)83 251 6644wwwJames-A-Robertson-and-Associatescom
JamesJamesARobertsoncom
LinkedIn httpukLinkedIncominDrJamesARobertsonERPDoctor
JARampA are available to assist in applying these principles
103
10 things to look out for
6 Evaluate all manual spreadsheet and custom applications and determine where these are a response to inexact or sloppy configuration and progressively adjust or eliminate
7 Develop a comprehensive awareness of the need for accurate data train personnel in terms of neatness accuracy spelling capitalization accuracy of allocation etc
8 Develop soft-issue metrics ndash customer satisfaction employee satisfaction etc
9 Harmonize critical elements of information classification ndash Accounts Assets People Products ndash across all modules and all systems ndash develop an integrated environment especially between the ERP and the Operational Systems
10Balance the decision support load between modules ndash move the detail out of the General Ledger ndash 5 to 10 Asset Categories People Categories Inventory Categories etc
104
Summing up
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Some items require a very small investment ndash an ART and a science
5 A significant opportunity to get more out of your current systems
Better DECISIONS
105
What is your single most important insight from this presentation
What is the single most practical action that you can take tomorrow to apply strategic (right thing essence thinking more effectively
JamesJamesARobertsoncom
Please write down
your thoughts
NOW
If you do not act within 48 hours you probably never will (Bill Gates)
Act TODAY
106
Assisting clients to thrive through the effective application of IT and ERP
QuestionsWe will email you my book and hand-outs of slides
Dr James Robertson PrEng ndash The ERP Doctor -- Mobile +44 (0) 77 6862 2875 +27 (0)83 251 6644wwwJames-A-Robertson-and-Associatescom
JamesJamesARobertsoncom
LinkedIn httpukLinkedIncominDrJamesARobertsonERPDoctor
JARampA are available to assist in applying these principles
104
Summing up
1 Excellent high value decisions rely on logical strategically aligned information the information to thrive
2 To get executive intelligence OUT you must put executive intelligence IN ndash ldquointelligent contentrdquo
3 Precision strategic content engineering IS THE missing link in ERP and IBIS
4 Some items require a very small investment ndash an ART and a science
5 A significant opportunity to get more out of your current systems
Better DECISIONS
105
What is your single most important insight from this presentation
What is the single most practical action that you can take tomorrow to apply strategic (right thing essence thinking more effectively
JamesJamesARobertsoncom
Please write down
your thoughts
NOW
If you do not act within 48 hours you probably never will (Bill Gates)
Act TODAY
106
Assisting clients to thrive through the effective application of IT and ERP
QuestionsWe will email you my book and hand-outs of slides
Dr James Robertson PrEng ndash The ERP Doctor -- Mobile +44 (0) 77 6862 2875 +27 (0)83 251 6644wwwJames-A-Robertson-and-Associatescom
JamesJamesARobertsoncom
LinkedIn httpukLinkedIncominDrJamesARobertsonERPDoctor
JARampA are available to assist in applying these principles
105
What is your single most important insight from this presentation
What is the single most practical action that you can take tomorrow to apply strategic (right thing essence thinking more effectively
JamesJamesARobertsoncom
Please write down
your thoughts
NOW
If you do not act within 48 hours you probably never will (Bill Gates)
Act TODAY
106
Assisting clients to thrive through the effective application of IT and ERP
QuestionsWe will email you my book and hand-outs of slides
Dr James Robertson PrEng ndash The ERP Doctor -- Mobile +44 (0) 77 6862 2875 +27 (0)83 251 6644wwwJames-A-Robertson-and-Associatescom
JamesJamesARobertsoncom
LinkedIn httpukLinkedIncominDrJamesARobertsonERPDoctor
JARampA are available to assist in applying these principles
106
Assisting clients to thrive through the effective application of IT and ERP
QuestionsWe will email you my book and hand-outs of slides
Dr James Robertson PrEng ndash The ERP Doctor -- Mobile +44 (0) 77 6862 2875 +27 (0)83 251 6644wwwJames-A-Robertson-and-Associatescom
JamesJamesARobertsoncom
LinkedIn httpukLinkedIncominDrJamesARobertsonERPDoctor
JARampA are available to assist in applying these principles
