MITIGATINGTHE RISK OF

ERP SOFTWARESELECTION

Evaluating new information systems is a daunting task - where do you start? There is so much to know, so much hype from the software companies,

competing agendas of departments within your organization and of course, everybody you talk to is an expert knowing exactly which package is best for

your company. Who do you believe?

Each year, North American companies spend over $250 billion on more than 175,000 Information Technology projects. Documented statistics reveal an

alarming project failure rate and the astonishing fact that only 29% of ERP projects are successful!

With more than 500 successful manufacturing and distribution ERP system implementations, Clients First Business Solutions has developed a guaranteed

process to assure success. Harnessing technology to achieve business improvement and a competitive advantage is a key objective of our process.

The Vision and Scope Setting Session

The first step in our process is to conduct a Vision and Scope Setting session (V&S) with your company’s Executive Management Team. This is typically a

half-day session and is provided at no charge. The format is a fast-paced, interactive dialog between Clients First business consultants and your

company’s management team. The results are visually documented and organized as the session is conducted. The following topics are included:

Where is Your Business Headed?

As the old adage says, if you don’t know where you’re going, any road will take you there. Management teams of profitable, growing companies always have a

vision of their future. The vision is translated into plans that facilitate the real-ization of the goals and objectives while ensuring growth and profitability.

An important ingredient in realizing the vision is an information system that can take you there and not limit your efforts.

This process includes an open forum where your management team shares with our consultants the business vision and plans for your

company for the next 2 to 5 years.

WHERE DO YOU BEGIN?

2

WHERE DO YOU BEGIN?What are the Issues and

Risks?In today’s fast-paced, global economy, there are many tactical steps required to realize the business vision. There are also many uncertainties and road blocks that can impede a company’s ability to do so. Our consul-tants engage your management team in a frank discussion to uncover potential risks and help identify contingencies that can mitigate these risks.

New System, Band-Aid, or Nothing?

Implementing a new information system is both costly and painful. It is therefore important to have a sound business case that warrants the required investment in time and money. If a new system does not bring you a tangible Return on Investment (ROI), operational efficiencies, or resolve compliance issues, you should NOT be purchasing a new system.

This part of the process determines if there is a valid business case and, if so, identifies the reasons for change.

Where does Data Live Today?

Many companies have disparate islands of data and isolated systems that individual users or departments have created to handle the daily opera-tions. This is both inefficient and cumbersome. It adds non-value costs to the products and services your company provides.

Efficient businesses use comprehensive and fully integrated real-time systems to operate productively at the lowest possible cost while providing high-levels of customer service.

In making the transition from your current IT environment to a new one, it is important to understand what systems are in place today, who uses them, and what data they contain. This process permits us to redesign inefficient business processes allowing the organization to function at optimum performance.

�

Business Requirements

Information systems must meet business and functional requirements to achieve organizational goals and objectives. This

part of the process identifies and prioritizes the high-level business requirements for today, as well as those that are required to fulfill the

business vision in the future.

Business Metrics

Key Performance Indicators (KPI’s) and business metrics measure an organization’s effectiveness in comparison to itself as well as

competitors and industry leaders. Clients First identifies the KPI’s and measures that are currently in place and identifies those metrics that

are important to track.

Success Criteria

To measure the effectiveness of a new business solution and potential return on investment, success criteria must be established to determine

tangible benefits by which the solution can be measured. This part of the process identifies those criteria.

What is the Project Scope of a New Business System?

Successful system implementations require a clearly defined scope of work. This typically includes both business and functional areas

within your company. Our methodology strives to provide the shortest time-to-value and rewards your stakeholders with an

early victory in the project life cycle.

This part of the process defines the approach and identifies the

project scope and phases.

The Detailed Requirements Analysis (DRA)

Once the Vision and Scope is completed, the next step is a Detailed Requirements Analysis (DRA). This is a fee-based engagement. The DRA is a comprehensive compilation of the results and findings based upon interviews conducted with people from within your company from all of the relevant business and functional areas.

These interviews expand on the business requirements identified during the V&S and include a detailed discussion of the functional requirements for each area.

One or more software solutions are recommended based on the require-ments identified during this process. A gap/fit worksheet is also included. The gap/fit analysis clearly indicates which requirements each software satisfies (fit) and which requirements it doesn’t (gap), along with options for handling the gap items. The gap/fit worksheet can also be used as the heart of an RFP (request for proposal) and submitted to potential vendors.

The DRA often contains a return on investment analysis identifying the ar-eas within your company where returns will be realized, an estimated dollar amount and the timeframe in which the payback is expected. This is helpful in presenting a justifiable business case, especially where a Board of Directors or other overseeing body is involved.

Another important aspect of the DRA is a high-level project plan. This section identifies the major tasks and their timeframes, a training plan, and the responsibilities of the project team.

© Copyright 2005, All Rights Reserved

How Does the DRA Mitigate Risk?

As mentioned before, only 29% of ERP software projects are successful. Of the successful projects, 95% of them had an

active project manager and followed a formal methodology similar to the one described above.

Companies utilizing the DRA process dramatically reduce the risk involved with implementing a new information system

and experience a significantly lower overall cost of the project. Making a small upfront investment ensures success,

minimizes risk, and provides the piece of mind knowing that:

• No stone was left unturned in identifying your company’s requirements • The scope, budget and timeframe is known in advance • You know exactly what will be delivered and

how it will benefit your organization

�

Guaranteed Project Success

Thousands of ERP engagements prove that software, no matter how proficient, had little to do with the success or failure of a project. In fact, success was almost entirely determined by the people, process, and the methodology utilized from the first client contact through the project’s completion.

Although customers often name cost as their primary concern in choosing software, the real issue at hand is risk. Of the many risks involved in implementing any ERP project, the greatest are cost overruns, late delivery, and lack of functionality.

The Clients First Success™ Methodology ensures that from our first contact, through ‘handing over the keys’ of the new system, we follow a consistent repeatable process that guarantees: that you choose the right system, that it is customized to fit all your critical business processes, and that it is delivered on-time, within budget, and with full functionality.

CLIENT PROFILEWORKSHEETDISCUSSIONDOCUMENT

GUARANTEED PROJECT SUCCESS

INITIAL

DISCUSSIONS

QUALIFICATION,

&

PROJECT

IDENTIFICATION

MUTUAL

CAPABILITIES

DISCUSSION

&

PRELIMINARY

ANALYSIS

DETAILED

REQUIREMENTS

ANALYSIS

$$$

SOLUTION

PRESENTATION,

BUDGET REVIEW,

&

FINALIZE SCOPE

PROPOSAL

REVIEW

&

CLIENT

COMMITMENT

REQUIREMENTSANALYSIS

PROPOSAL

REQUIREMENTSANALYSISREPORT

REFINEREQUIREMENTS

REPORT

SOLUTIONPROPOSAL

EXECUTEAGREEMENTS

Project Methodology - Pre Implementation

CLIENT PROFILEWORKSHEETDISCUSSIONDOCUMENT

Project Methodology - Delivery

GUARANTEED PROJECT SUCCESS

SYSTEM SET-UP

END-USER TRAINING

PROJECT & CHANGE MANAGEMENT

ANALYSIS DESIGN

CUSTOMIZATION,

DEVELOPMENT,

TESTING,

DATA

CONVERSION

DEPLOYMENT

&

FINAL DATA

CONVERSION

GO-LIVE

HAND HOLDING,

&

ON-GOING

SUPPORT

PROJECTCHARTER

SET-UP &IMPLEMENTATION

DECISIONS

CUSTOMIZATION &DEVELOPMENT

SPECIFICATIONS

The Next Step …

Clients First provides comprehensive business solutions that middle market companies require to gain a competitive advantage and com-pete successfully in today’s business environment. We have extensive

knowledge and expertise in distribution and manufacturing where we serve more than 520 clients.

We welcome the opportunity to engage with your team and share how the Clients First Success Methodology has delivered measurable results

and business value to our distribution and manufacturing clients.

Contact us at 8��.�77.�290 or email us at info@ClientsFirst-us.com to receive a free Video CD on “Mitigating the Risk of ERP Software Selection”.

Web: www.ClientsFirst-us.com

Email: info@ClientsFirst-us.com

Telephone: 8��.�77.�290

Office Locations:

New Jersey Massachusetts Ohio Alabama Tennessee Texas California

© Copyright 2005, All Rights Reserved