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50 Ways To Drive ERP Systems To Success
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50 Ways To Drive ERP Systems To Success
50 Ways To Drive ERP Systems To Success
John McGrann MBA ACMA AIMCCEO
50 Ways To Drive ERP Systems To Success
John McGrann MBA ACMA AIMCCEO
15 years Oracle Applications Manager experienceProjects / Support / Change ManagementChartered Management AccountantMBA Financial ManagementPublic sector clients: MoD / Rent Service / Network RailPrivate include: General Electric / Canon / TUI /Saudi Telecom Owner: www.DriveERP.comOwner: LinkedIN group - Drive ERP6 Subgroups
50 Ways To Drive ERP Systems To Success
AGENDA
BACKGROUNDCURRENT PERCEPTION OF ERP SYSTEMS
PERFORMANCEPEOPLE DRIVE ERP PERFORMANCE SUCCESSTHE DRIVERS OF ERP PERFORMANCE SUCCESSERP TOP TOOLSERP SELECTIONDRIVE ERP SERVICES
50 Ways To Drive ERP Systems To Success
Recent LinkedIN.com poll:
32% - Real Cash Benefit / Cannot Live Without It
68% - Too Complex / Little Value / In Learning Mode
50 Ways To Drive ERP Systems To Success
Quotes:
« Our Accounting Reporting System is in Excel »
« I asked the same question using 3 Oracle reporting tools and got 3 different answers »
« We put Oracle Financials in before…and took it out again»
« We have 3 Access databases for every employee »
50 Ways To Drive ERP Systems To Success
BACKGROUND OF ERP PERFORMANCEEnterprise Resource Planning (ERP)
Manage resources, information, and functions ideally from a single database
Vendors include best practices Technical performance is good Business performance is variable Circa. 40% of claim that their ERP systems add real value to
their bottom line
50 Ways To Drive ERP Systems To Success
KEY OBJECTIVES FOR ERP SYSTEMSAutomating processes - cost savings, streamlining and
standardisingInforming stakeholders (reporting) - effective information
for competitive advantageEducating users and managers – utilise the full potential of
ERP Transforming the way business is done – use ERP to
change for the better
50 Ways To Drive ERP Systems To Success
CURRENT PERCEPTION OF ERP SYSTEMS PERFORMANCETechnology vs. Business View
Divide between the IT and business teams IT deliver the system and subsequently support it Business settles for Go Live functionality Job gets done albeit in an inefficient manner and frustration
sets in Ownership and management of the enterprise system is unclear Capabilities of the system unknown & slow progress ERP vendor is likely to be blamed for the lack of success
50 Ways To Drive ERP Systems To Success
CURRENT PERCEPTION OF ERP SYSTEMS PERFORMANCEReasons For Performance Shortfall - Signs
Heavy customizations Lack of planning and management Disgruntled users Ad hoc ancillary systems in MS Excel and MS Access Array of reporting tools Problematic interfaces IT driven
50 Ways To Drive ERP Systems To Success
CURRENT PERCEPTION OF ERP SYSTEMS PERFORMANCEReasons For Performance Shortfall
Independent business units and politics Lack of management or leadership Business process issues ERP evaluation failure Lack of effective change management Not measuring success Poor data Poor role definition Lack of an effective reporting strategy Lack of empowerment Ineffective change control
50 Ways To Drive ERP Systems To Success
PEOPLE DRIVE ERP PERFORMANCE SUCCESS
Why do people who ostensibly have the same start in the career race perform at different levels?
Why are so many organizations failing to perform to a high level in automating processes, informing stakeholders (reporting), educating users and managers, and positively transforming the way business is done?
Surely these are the key objectives for all ERP systems?
PEOPLE DRIVE ERP PERFORMANCE SUCCESSIndividual performance
20% contribution of performance is trained and learned skills - basics
80% our personal skills - the drivers – including:Decision making ability and judgement Leadership Assertiveness Coping with stress Enthusiasm and energy (Passion) Motivation Team building Self-confidence Initiative
50 Ways To Drive ERP Systems To Success
50 Ways To Drive ERP Systems To Success
PEOPLE DRIVE ERP PERFORMANCE SUCCESSOrganisation ERP Performance
Share the same basics including Technical infrastructure Qualified IT and applications staff Competent users Project methodology Systems integrator Same ERP application
What are the drivers for ERP performance success?
50 Ways To Drive ERP Systems To Success
PEOPLE DRIVE ERP PERFORMANCE SUCCESSOrganisation ERP Performance - the drivers
Actually Managing ERP Applications - as an investment Successful Change Management - people are key Leading a Support Team - proactive not reactive Measuring Success and Value for Money - monitoring performance Data and Information - planning and managing Customers and Collaboration - working together for the benefit of all Reporting and Business Intelligence - the right tools for the job Empowerment and Super Users - unleash skills and passion Change Control and Value for Money - cost benefit analysis Project Management Kept Simple - a few tips Process Improvement - continuous and alignment with applications Management Information Systems - efficient and effective systems
50 Ways To Drive ERP Systems To Success
THE DRIVERS OF ERP PERFORMANCE SUCCESSActually Managing ERP Systems
Who owns your ERP applications? IT or the Business? Who manages your ERP applications? What is the Strategy for ERP applications? How much will you spend on your ERP applications over 10 years? Who are your customers? What is your customisations policy? Is your ERP Applications strategy aligned to business / corporate
plans? Is your support team purely reactive? What % of the potential of ERP are you utiliisng? How does your OERPperformance compare against prior years? Other
orgs? Budgeting and MI reports? Do you implement change successfully? Is your user community empowered?
50 Ways To Drive ERP Systems To Success
THE DRIVERS OF ERP PERFORMANCE SUCCESSSuccessful Change Management
Traditionally change management around ERP applications projects means:Communicating features and benefits of the new systemTraining, education, and external information programmesNew organisational structures, policies, and proceduresMonitoring and evaluating the organisation's performance
50 Ways To Drive ERP Systems To Success
THE DRIVERS OF ERP PERFORMANCE SUCCESSSuccessful Change Management - Winning the Change
Game Firing up The Team! - Create a sense of urgency and crisis. You need
targets and accountabilities Leaders on and off the pitch! - Create from the powerful and
influential and make it visible A Vision of Glory! - Make the vision feasible, desirable, focused and
flexible Roaring on the Team! - A simple message using many channels with
leaders setting an example Battling and Dominating! – Align systems and organisation to the
vision, and deal with troublesome managers Goals! – Celebrate and communicate short term wins More pressure! More goals! – Create more change, success and
leaders The Winning Mentality! – Make successful change part of the
culture
50 Ways To Drive ERP Systems To Success
THE DRIVERS OF ERP PERFORMANCE SUCCESSLeading a Support Team
IT function? IT or Business background for Support Team analysts? Reactive or proactive? Efficiency of the support function Measure solutions and financial benefits - Celebrate and
communicate Cost benefit analysis & Customisations - undertake for all
changes Flexible staff - multiple modules and be trained in the drivers Cost or profit centre - for benchmarking and efficiency analysis Consider using spare capacity as a service provider externally Outsource – counter it on the basis of cost, continuity,
communications, loyalty
50 Ways To Drive ERP Systems To Success
THE DRIVERS OF ERP PERFORMANCE SUCCESSMeasuring Success & Value for Money
Measure effectiveness and efficiency of your support team Analysis of customers and users costs and efficiency savings Analysis of Service Requests (internal and external) Benchmarking internally and externally KPIs
Aligned with business goals and successQuantifiable
Key customer metricsSatisfactionRetentionProfitabilitySLA complianceCall resolution
50 Ways To Drive ERP Systems To Success
THE DRIVERS OF ERP PERFORMANCE SUCCESSKPIs examples
Return on Investment Service Requests Analysis & SLAs Efficiency Analysis Support Hour Cost Development Hour Cost Efficiency Savings Production Change Request Analysis Customer / User Analysis Training Provision Analysis Benchmarking - Oracle Service Requests (Metalinlnk) Benchmarking - Aberdeen Group
50 Ways To Drive ERP Systems To Success
THE DRIVERS OF ERP PERFORMANCE SUCCESSData and Information
Management information is data processed to make informed decisions
Much of MI is useless for that purpose The repetitive production of data should be vigorously
questioned Data and technology are not ends in themselves Data Migration - significant amount of planning
Identifying the data to be migratedDetermining the timing of data migrationGenerating the data templatesFreezing the tools for data migrationDeciding on migration related setupsDeciding on data archiving and purging
50 Ways To Drive ERP Systems To Success
THE DRIVERS OF ERP PERFORMANCE SUCCESSData and Information
Data Quality Ensure data quality is maintained in your ERP system Get it right first time and keep it right Invest in a data quality audit tool and report back to users Archiving and purging policy that works Ensure users have regular and effective housekeeping routines
Database performance DBAs do a fine job but make sure they are being proactive in
optimising database performance.
50 Ways To Drive ERP Systems To Success
THE DRIVERS OF ERP PERFORMANCE SUCCESSData and Information - Oracle 11g database
11g Data Masking Oracle Database Partitioning Information Lifecycle management 11g Compression Oracle Database Vault Oracle Transparent Data Encryption Data Profiling and Anomaly Detection 11g Database Replay SQL performance analyser: Real Application Testing 11g Active Data Guard
50 Ways To Drive ERP Systems To Success
THE DRIVERS OF ERP PERFORMANCE SUCCESSProcess Improvement
ERP vendors have standard business processes - best practise Organisations may choose to adopt standardised processes or
customise Customisations are expensive to develop and support long term Customisations are a risk during upgrades Neglecting to map current business processes main reason for
failure Thorough business process analysis before selecting an ERP
vendor Link each current organizational process to the organization's
strategy Analyse the effectiveness of each process Understand the automated solutions available Integrate the business and application process for training and
support Continuous review of key processes by business and
applications team
50 Ways To Drive ERP Systems To Success
THE DRIVERS OF ERP PERFORMANCE SUCCESSCustomers and Collaboration
Big impact on systems performance as they consume your resources
Traditional view of a customer (external):Consumer of your goods and servicesPay for your goods or servicesAble to choose other suppliersUnprofitable or troublesome you can end the relationshipThere is a legal agreement
Internal Customers Executive level managers are customers for ERP systemsIf you are not a customer - then you are a user
50 Ways To Drive ERP Systems To Success
THE DRIVERS OF ERP PERFORMANCE SUCCESSCustomers and Collaboration
Define Customers vs. Users (esp. Internal services) Set up an Engagement Model - right ERP project and/or support
team members meet the right business users at the right levels Report back on customer MI - discuss ERP management
information Manage Reporting Strategy jointly Set up a Custodianship Model
50 Ways To Drive ERP Systems To Success
THE DRIVERS OF ERP PERFORMANCE SUCCESSCustomers and Collaboration - Set up a Custodianship
Model Defines roles, responsibilities, duties, and relationships Without it - chaos reigns Business Partners own business processes and controls ERP teams implement and maintain them Business Partners authorise access to their modules - ERP
teams grant Business Partners own application data - ERP teams monitor
data ERP teams are custodians & managers for live ERP
applications. ERP team authority is delegated from the IT Senior Leadership
Team All actions are aimed at benefiting the whole of the organisation Manage Reporting Strategy – constant agenda item
50 Ways To Drive ERP Systems To Success
THE DRIVERS OF ERP PERFORMANCE SUCCESSReporting and Business Intelligence
Defined by the business – the WHAT Delivered by IT apps team – the HOW Partnership: Align with the company Reporting Strategy
Top down…bottom up approach Utilise best practiceDeploy appropriate reporting toolsBaseline current reporting Change request raised and fully scrutinised for value for moneyDetailed analysis Agreed solution - effective and efficient Controlled developmentFully testedDeployed in production
50 Ways To Drive ERP Systems To Success
THE DRIVERS OF ERP PERFORMANCE SUCCESSEmpowerment and Super Users 1Super Users
Skilled end users developed to maximise benefits from ERP Are users too reliant on IT support staff? Subject Matter Experts and passionate ERP users Users > Super Users > Support Team > Vendor Support Role of the Super User Selection of Super User Training and Development Super User Groups Custodian of module including set up Resolves process vs. Systems issues
50 Ways To Drive ERP Systems To Success
THE DRIVERS OF ERP PERFORMANCE SUCCESSEmpowerment and Super Users 2Super User Groups (SUGs)
A Vision - To be acknowledged as the user experts in the organisation
Big Picture - Fit in the ERP space in the organisation Objectives - it must pay for itself with effective solutions Benefits - Voice of the users, process improvements,
efficiencies, best practise Ownership - By the business Structure - Relationships with other groups and stakeholders Processes - Change requests, support calls analysis, review Customers - Users, management, auditors, functions,
stakeholders. Training and Education - Knowledge sharing. Presentations,
user training
50 Ways To Drive ERP Systems To Success
THE DRIVERS OF ERP PERFORMANCE SUCCESSChange Control and Value for Money
Safeguard the Production environment & designs Disciplined environment – timely changes Stakeholder buy-in & documented Clear impact and potential risks Consult all impacted Management and contractual approvals Auditable records of changes Minimise outages & release overheads Cost Benefits Analysis per change
50 Ways To Drive ERP Systems To Success
THE DRIVERS OF ERP PERFORMANCE SUCCESSProject Management Kept Simple
Keep them as simple as possible Make effective change management a key objective Develop partnership between project team and all stakeholders Set expectations at the correct level Get the necessary budget Make sure key business resources are available Plan well but be flexible Meet obstacles head on and remove them Keep reports and meetings as brief as possible
50 Ways To Drive ERP Systems To Success
THE DRIVERS OF ERP PERFORMANCE SUCCESSManagement Information Systems
Decision support systems, resource and people management applications (ERP), project management, and database retrieval applications
Key developments in management information include:100% CEOs - Non Financial Indicators were vitalBalance Scorecard - For measurement of:
• Customers
• Financial
• Learning / Growth
• HR Management
• Internal Operations / Processes
• Social / Community
• Corporate Governance
50 Ways To Drive ERP Systems To Success
ERP TOP TOOLSOPIExcel4Apps – GL WandSTT TrainerNET (net)OutsourcingAutomate - Informate - Educate – TransformateUse Intranet for Support Service RequestsSet Up Crack team ERP on company intranet
50 Ways To Drive ERP Systems To Success
ERP TOP TOOLS Performance Optimisation Management System
BusinessView Methodology & Application all in one! For all IT and business support teams Manage Efficiency, Activities, Customers and Cost Support Ticket management Contracts and SLAs management Assets and inventory management Projects & Change control Super reporting! Free Online Demo!
50 Ways To Drive ERP Systems To Success
ERP TOP TOOLS
Excel4Apps – GL Wand Proven Excel based Oracle GL Reporting tool Finance departments using 11i or R12 Oracle GL Easily Create, Edit and Publish Finance Reports in Excel While Connected to Oracle GL Easy to Install and Maintain No Training Required Easy to Use, Tightly Integrated and Secure GL Wand Reports are Refreshable on Demand Free 1 Month Trial!
50 Ways To Drive ERP Systems To Success
ERP TOP TOOLS STT Trainer
Create simulation-based training for business software applications
Develop innovative business training for employeesIncreased productivityEfficient training deploymentSuccessful project managementFaster return on IT investmentModes – training, demo, assessment, live helpVideo, audio, presentations, web content, flash filesDifferent languagesDeliver online or in classroom Free Online Demo!
50 Ways To Drive ERP Systems To Success
ERP TOP TOOLS
NET(net) Specializes in vendor contract lifecycle management and
optimization services Recognized as an industry leader Review, analyze and optimize core enterprise IT contracts Offering cost free initial assessments Delivering in excess of 33% savings for clients on new and
existing IT agreements including:
Cisco Smart Microsoft Symantec Apple SAP Oracle Lawson SF.com Siebel NetSuite AT & T Verizon Sprint POS HCM ECM
50 Ways To Drive ERP Systems To Success
ERP TOP TOOLSOutsourcing – Support & Developments services
Cost savings Billable hours Utilise as needed Wider skill base Usually 24/7 support MI reports SLAs Flexible staffing Client focus on core functions Associates in USA, India & the Philippines
50 Ways To Drive ERP Systems To Success
ERP TOP TOOLSAutomate - Informate - Educate – Transformate
Keep ERP Focus: Automate - Audit Excel & Access files & FSGs & Uploads Informate - Ensure ERP meets your reporting and KPI needs Educate - Keep Support and Users up to date with ERP
developments and best practise Transformate - User ERP and Business Process redesign to
change how you do business
50 Ways To Drive ERP Systems To Success
ERP TOP TOOLSUse Intranet for Support Service Requests
Specially Designed Intranet Call Form No More Telephone Calls User Completes Form and Submits Form Asks All Relevant Questions Received Instantly By Support Team Logged In Company Support System Saves 1000s of hours for support team and users Integrate with your help desk system
50 Ways To Drive ERP Systems To Success
ERP TOP TOOLSSet Up ERP Crack team
Within Support Team Flexible for enhancement work Focus on current functionality ERP and business process skills Work with SMEs in business Quick Wins Only Added Value Work Skilled in drivers IT and business staff Set Targets
50 Ways To Drive ERP Systems To Success
ERP TOP TOOLSIntranet for ERP
News Support calls Releases & Upgrades Training Vendor webinars Vendor documentation MI reports Surveys Super User Groups Production Changes / Outages
50 Ways To Drive ERP Systems To Success
ERP SELECTION References Decision Support System (DSS) Hardware and software compatibility Flexibility Change management.Legacy data Real costs Business processessource code Training Audit implementationTechnical and customer support
50 Ways To Drive ERP Systems To Success 40
BEST IN CLASS - Traits
Standardised approach to ERP implementationExecutive oversightFullest use of ERP features and functionsContinuous measurement of ROIBusiness driven more successful Continuous ERP trainingBroaden and deepen ERP usageCompetitive advantage
Source: Aberdeen Group
50 Ways To Drive ERP Systems To Success
BEST IN CLASS - Results
Best-in-Class companies attain more than twice the average annual service profitability of Industry Average firms (60% versus 26%).
Best-in-Class companies attain fives-times the year-over-year workforce productivity of Industry Average firms (15% versus only 3%).
Best-in-Class companies attain more than 1.2-times better customer satisfaction over Laggard organizations (88% versus only 69%).
88% customer satisfaction rate60% service profitability15% productivity increase year on year50% more likely than the average to use KPIs
50 Ways To Drive ERP Systems To Success
Any Questions
SERVICES OF DRIVE ERP
Interim Management Consultancy Project ManagementSupport ManagementChange ManagementCompany WebinarsCompany SeminarsAssignmentsRecruitmentIT Contracts Review
50 Ways To Drive ERP Systems To Success
John McGrann MBA ACMA AIMC
www.DriveERP.com
+357 96-728265
50 Ways To Drive ERP Systems To Success