Integrated Business Systems: Success Through Change

davtecexceptional technology solutions

Integrated Business Systems:

Success through Change

Laz Davila

Director

Davtec IT Pty Ltd


IT / Software Industry since 1985:

Corporations: 15 years

Small Business: 3 years

Consulting (to both): last 5 years

Anecdotal evidence:

Common sense

Laz Davila: About Me

http://www.davtec.com.au/


Take an old idea

Niche / Renew

Do it better(Technology)

Fresh Thinking. Real Success.



Enterprise resource planning (ERP):

“an enterprise-wide information

system designed to coordinate all the

resources, information, and activities

needed to complete business

processes such as order fulfillment or

billing.”

Source: Wikipedia.org

ERP – Business Nirvana



Integrating business processes

“end to end” can:

Save costs (improve efficiency)

Accelerate production (more revenue)

Improve quality and consistency of results

(more happy clients = more revenue)

---

Bottom Line: More Profit

In English?



Financials

Supply Chain Management

Decision Support

Human Resources

Manufacturing

Projects

Customer Relationship Management

Etc, Etc...

Any two qualifies a product as an ERP

What can you integrate?



Example ERP Systems

Source: http://hosteddocs.ittoolbox.com/corioerp_survey.pdf



It’s a long way to the top



Why is this a big deal?



And why is it so hard?



Complexity

Software

Business

Changes to

work practices

Migration

of Data

Timing “Go Live”

Long Projects - Months to Years

No, really, why is it so hard?



It’s not about the IT

Source: http://hosteddocs.ittoolbox.com/corioerp_survey.pdf



Let’s tackle the issues: Requirements

Source: Lego TM



Balance how ERP system has been

designed to work against how the

business works

And how does the business work?

Standardising to ERP processes can lead

to loss of competitive advantage

Compromise – edit/develop modules

or interface to existing methods

More on Requirements



Senior staff less happy to change

Beware separate, independent

divisions with their own processes

Stovepipes and niche tools (e.g. Excel)

Resistance to change



Design and implementation needs

key business resources

So who does their day job?

Guideline cost of customisation:

Medium: 2 x User Licence fees

Large/Multiple Sites: 3 to 5 x User Licence

fees

Inadequate Resources / Time / Budget



Inadequate Training



Lack of Top Management Support



Poor Communications



Incompatible software with business

processes

Poor project design / management

Poor ERP Package selection

Use of Consultants

Can do it better

in house...

Well, maybe it *is* the IT



Cost and Schedule Overruns happen

Half pregnant

Eli Lilly SAP

implementation

example:

From:

4 year x 70 people

To:

6 year x 100 people

[A success story]

Knowing everything we know...



Insufficient Training

Poor system performance

Inadequate support

Surviving ERP Shock



Dirty Data building up over time

Garbage in / Garbage out

Blurring

accountability /

lines of responsibility

and morale

No time to rest...

And we live happily ever after



Questions?



2004 ITtoolbox ERP Implementation Survey

Sponsored by Corio

http://hosteddocs.ittoolbox.com/corioerp_survey.pdf

Eli Lilly: Leveraging SAP XI in Your Landscape: Costs, Benefits, Lessons Learned

Timothy S Yates, Scott A Sanneman

2007 ASUG National Conference

Why Erp? a Primer on SAP Implementation

F Robert Jacobs, David Clay Whybark

McGraw-Hill/Irwin, 2001

Changing the Way We Manage Change

Ronald R. Sims

Greenwood Publishing Group, 2002

Photos: http://www.sxc.hu

Bibliography / Credits



For further information, please contact:

Laz Davila

davtec

321 Portrush Road

Toorak Gardens SA 5065

Ph: (08) 8333 3440

Mob: 0402 452 529

[email protected]

