How to Build a Business Case for ERP Replatforming
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The document outlines a webinar series on replatforming and building a business case for ERP transitions, highlighting its importance in minimizing risks and enhancing project success. It emphasizes the need for thorough planning, including identifying challenges, assessing potential benefits and costs, and defining team roles for effective implementation. The business case serves as a formal tool to support decision-making and aligns projects with organizational strategies.
How to Build a Business Case for ERP Replatforming
- 1. www.blytheco.comwww.blytheco.com Are You Ready for Replatforming? Webinar 2: How to Build a Business Case
- 2. Agenda Recap: What is Replatforming? Why Build a Business Case? What is a Business Case? Next Steps and resources for today
- 3. Introductions Alicia Anderson Strategic Marketing Atlanta, GA-based 19 years in ERP sales, service and marketing
- 4. Moving to automation for the first time. Transitioning to a new system. Upgrading an existing system. What is replatforming? This series is designed to give you the tools and knowledge needed to make ERP transition smooth and minimize risk. Industry analyst Mint Jutras reports that 73% of surveyed companies said that “management driven change was requiring moderate to substantial ERP change”
- 5. Series Introduction – May 7 How to Build a Business Case - TODAY How to Scope Your Project - Wednesday, July 9 How to Evaluate Solutions and Build Your Evaluation Committee - Wednesday, August 6 Cloud vs. On-Premise - Wednesday, September 3 Know Your Payment Options - Wednesday, September 24 The Series
- 6. Build a Business Case 1
- 7. You have identified a missing piece in your business ERP projects fail because of inadequate planning and risk management The business case is a tool to help formalize the idea or argument and create the evidence to move your project to the front burner Move your idea to the “front burner” According to one recent report, more than 29% of ERP implementations fail to achieve even half the planned business benefits.
- 8. Describe the business challenge Assess the potential benefits of the investment Assess the potential costs of each option Assess risks and issues that might arise during the implementation List the pros and cons of potential solutions Describe the implementation approach Measure potential and actual ROI What is a Business Case? A business case is a document that helps you weigh the pro’s and con’s of a solution and understand if there is a cost benefit to changing your solution. It will help to:
- 9. Establish a baseline of how things are now Anticipate risks of change Define roles Get buy-in Record feedback from all departments Align your project with the defined company strategy Why a business case? A business case helps you establish a baseline and make sure there is alignment to your strategy.
- 10. The Test Case Acme Distribution Company Mid-sized wholesaler Expanding into global markets Using legacy systems and siloed spreadsheets Growing organically Let’s walk through building a business case for a sample company to help illustrate how this will benefit your company
- 11. The Stakeholders Joe Jones, Controller Jane Smith, Operations Manager Bill Williams, IT Manager The stakeholders are those that have recognized a need in the business and will be involved in documenting the requirements, communicating with teams, and facilitating the project.
- 12. Define Team Member Roles Assign Ownership of the Document First things first First you need to start by defining the team that will be responsible for the documentation and unbiased gathering of the information. piece about why these things first
- 13. The stakeholders Joe Jones, Controller • Role: Project Manager • Owns the Document Enjoys Excel spreadsheets, small, fluffy dogs, and walks on the beach.
- 14. Jane Smith, Operations Manager • Role: Process Improvement • Advises team on process improvement techniques Coffee addict, enjoys 80s music and crossword puzzles.
- 15. Bill Williams, IT Manager • Role: Technology Support Plays guitar in a band on the weekends, enjoys zombie movies – a little too much.
- 16. A New Stakeholder Bob Robinson, COO • Role: Executive Sponsor • Advocates for the plan • Gets approval from other Executives • Removes roadblocks Golf nut, dedicated grandfather, battling a Diet Coke addiction.
- 17. Formalize the idea Support it with data Outlines the justification for the project Provides a common language Can easily be updated as new information is gathered Use the template to get started! Why Create a Document for your Business Case? Formulizing the business case helps create common language for you to assess your project
- 18. Executive Summary Business Case Analysis Team Problem Definition Project Overview Strategic Alignment Cost Benefit Analysis Alternatives Analysis Approvals Sections of the Business Case
- 19. Issue Anticipated outcomes Recommendation Justification Executive Summary The Executive Summary provides general information on the issues surrounding the business problem and about the proposed project to solve it. It can be done last. piece about why these things first
- 20. Business Case Analysis Team This section describes the roles of the team members who developed the business case. It is imperative that participants and roles are clearly defined for the business case as well as throughout the life of the project. about why these things first
- 21. Problem Statement Organizational Impact Transition Approach Problem Definition This section documents the current problem to be solved, its impacts, and a high-level overview of any specific requirements.about why these things first
- 22. Project Description Goals and Objectives Project Performance Project Assumptions Project Constraints Major Project Milestones Project Overview This section consolidates all project-specific information into one chapter and allows for an easy understanding of the project since the baseline business problem, impacts, and recommendations have already been established.
- 23. Strategic Alignment Overview of the organizational strategic plans that are related to the project. This includes the strategic plan, what the plan calls for, and how the project supports the strategic plan.
- 24. Cost Benefit Analysis Costs of the project Compared to benefits and savings Determine project viability
- 25. Alternatives Analysis A brief summary of considered alternatives should also be included—one of which should be the status quo, or doing nothing. The reasons for not selecting the alternatives should also be included.
- 26. Approvals The business case is a document with which approval is granted or denied to move forward with the creation of a project. Therefore, the document should receive approval or disapproval from its executive review board.
- 27. Buy-in from the important stakeholders in your business A connection between your project to the core business strategy A clear plan for going forward Knowledge of how to make the project successful Confidence in the chosen solution A Completed Business Case will give you…
- 28. What is your role on the Business Case Team? Executive Sponsor Technology Support Process Improvement Project Manager Audience Poll The business case team develops the requirements that will become your new system
- 29. Define your project team Use the Worksheet! Your Homework for Next Time
- 30. Available on our blog at http://blog.blytheco.com/?p=4423 Business Case Document Template Business Case Team Worksheet Reading List Copy of this presentation “7 Steps to Building a Business Case for ERP” Whitepaper Resources for today’s class
- 31. Next Classes… How to Scope Your Project - Wednesday, July 9 How to Evaluate Solutions and Build Your Evaluation Committee - Wednesday, August 6 Cloud vs. On-Premise - Wednesday, September 3 Know Your Payment Options - Wednesday, September 24 Sign up here.