Two decades ERP by Patrick Dewilde

Two decades ERP

“Opportunities and pitfalls with ERP

programmes in large organizations”

Patrick Dewilde

Nestlé GLOBE CIO-Office

Projects Portfolio Management Services

CONFENIS 2012

2 Decades ERP – Copyright P. Dewilde 2 9/21/2012

My 1991 – 2012 ERP journey

Saint-Gobain

Norske Hydro

Rentokil

Arcelor

Siemens

Campina

Agfa

Nestlé

InBev

NMBS

10 “environments” – 7 SAP-centric

Technology fit

Concept Validation

Build Effectiveness

Testing Completeness

Learning Impact

Data Readiness

Stabilization Cost

Sustainability

IT C

han

ge a

bso

rptio

n

Bu

sin

ess-IT

Go

vern

an

ce

10 Get Rights

3 year application & technology

strategy is a must

Core and Edge

Next release syndrome

Marketing hype versus sound references

Account management of the Technology

partner


Technology fit


Po

rtal

Finance

Global

HR

Report Global

Regional

/ Zone

Local / Sub

Regional

EBP

Global Master Data

MDR e-recruiting

Reporting

Audit

Payroll & TM

CRM

Commercial Ops

SEM /

BIW

DP

Commercial Ops Systems

3rd Party WMS

Supply Ops.

GATP

SNP / PPDS

Supply Operations Systems

Restitution

(EUR only)

Common Master Data

SDR

Sys

tem

Inte

gra

tion

Central User

Administration


Build Effectiveness

Beware the lack of experience…

The world is flat

Specialization versus minimum handovers

White raves

Benchmark and internal management





Sending Fukushima to Mars

From smart ass to fool proof testing

Stabilize and automate

Copy production (often !)

Synergize with learning effort


Learning Impact

Bridge the middle management gap

Bottom-up and top-down

Multi-channel

Repeatability

Internalize and promote-to-academy


Data Readiness

Data : expect the unexpected…

Impose cleanliness & accuracy thresholds

Process and Data owners

Repeatability (again!)

Apply LEAN data processes …


SKUs & Recipes & Specifications & Raw materials...

5240722

KitKat Chunky Single (24x55g)


Stabilization Cost

The Day After

Strict withdrawal

Bug-fix fast track

Minimize externals – Invest in new young

joiners

Clear RACI between Business and IT


Santiago HO

Macul Factory

Maipú Factory

Graneros Factory

San Fernando Factory

Los Angeles Factory

Osorno Factory

Llanquihue Factory

Iquique

Antofagasta DC

Copiapó

La Serena DC

Viña del Mar DC

Macul DC

I/C Logistic Operator

Quilicura-Santiago DC / Lourdes

Maipú DC

Petcare DC (from April/1st)

Talca

Concepción DC

Temuco DC

P.Montt DC

P. Arenas DC

1 single Go-Live


Manuf Mexicali

Manuf. Ocotlán

Manuf Lagos: F&B,

IceCream & CPW

Manuf Querétato: Evaporated Milk

Manuf Toluca: Coffee, FoodServices &

Chocolates

Manuf Santa María

Manuf Tlaxcala

Manuf Coatepec

Manuf Chiapa de Corzo

DC Guadalajara

DC Hermosillo

Purina

DC Veracruz

DC Querétaro

DC Monterrey Manuf (14)

DC’s (42)

DC Acapulco

DC

Tijuana

DC Vallarta

DC Culiacán

DC Mérida

DC Villahermosa

DC Chihuahua

DC DF Sur

DC Puebla

DC Naucalpan

DC Mexicali

DC Cuernavaca

DC

Cancún

DC San Luis Potosí DC León

DC LAGOS

DC TOLUCA

DC Torreón

DC La Paz

DC Ixtapa

DC Morelia

DC Coatzacoalcos

DC Tuxtla

Manuf Nestlé - Purina

Cuautitlan

DC Los Cabos

Head Office

HO ( 1)

DC Manantiales

DC Coatepec

DC Chiapa de Corzo

DC Cuautitlan Purina

DC Villahermosa Purina

DC Querétaro Purina

DC Monterrey Purina

DC Tijuana

Purina

DC Obregón

DC Mérida

Purina

DC Guadalajara

Purina

DC Tequesquinahuac

DC Tapachula

Total Sites Nestle Mexico


Sustainability

The toughest journey is after Go-Live

From Program to Line organization

Accountable Key-users and Process-owners

Change flexibility versus Compliance

99.8%


IT Change absorption

IT Change Agenda can be huge…

3-tier approach : Global – Zone – Market

Reducing Data Centres from 80 to 4(+1)

Reducing Implementation & Support Centres to 5

Introducing Follow-the-Sun + Offshore factories

Partial outsourcing

Country focus limited to connected applications only

Centralized purchasing decisions + global contracts

Application and Solution resources report to Business

New SLAs and new cost allocation mechanisms (% of Net Sales)

A number of processes will migrate from Market to

Regional or Global organisation

Future

Business

Model

Regionalized Processes e.g. Tax optimisation, Demand & Supply Planning,Strategic Planning,

Factory Rationalisation, Logistics Rationalisation

Shared Services Processes e.g Shared Services implementation

Global processes e.g Global Purchasing, Strategic planning

GLOBE Template

implementation Market

processes

Global

processes

Regional

processes

Process convergence Data convergence

Tactical commercial initiatives

Volume reduction

Process elimination / rationalisation

Market Current

Business

Model

Market

processes

Global

processes

Regional

processes

Benefits Benefits

Embed ERP inside Business Program

18 2 Decades ERP – Copyright P. Dewilde

Business-IT Governance

19

Technology fit

Concept Validation

Build Effectiveness


Learning Impact

Data Readiness

Stabilization Cost

Sustainability

IT C

han

ge a

bso

rptio

n

Bu

sin

ess-IT

Go

vern

an

ce

ERP Technology impact

People / Experience / Skills

Governance / ChangeMgmt

Thank you !

[email protected]

9/21/2012 2 Decades ERP – Copyright P. Dewilde 20