Rapid Deployment of ERP solutions using Lean & Agile Methods
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The document discusses the rapid deployment of ERP solutions using agile methods, emphasizing the need for faster implementation and reduced risks compared to traditional waterfall approaches. It highlights best practices for agile adoption, including organizational change management and the significance of value stream mapping to identify inefficiencies. Key components for successful agile ERP implementation are outlined, such as the necessity of a skilled team and prioritizing resources for quick value delivery.
Rapid Deployment of ERP solutions using Lean & Agile Methods
- 1. AGILE MEAGILE ME Husni Roukbi PMP,CSM, SAFe SPC Rapid deployment of ERP solutions using lean & agile methods
- 2. AGILE ME WHO IS IN THE AUDIENCE? • How many people work for an organization that has an ERP system • How many people have worked on an implementation project for these software applications? • How many people have implemented a project for these applications using Agile? 2
- 3. AGILE ME • Implementing ERP solutions in the traditional waterfall way that takes up to 18 months before a customer can see the value of it is no longer acceptable. CLOUD AND AGILE HAS CHANGED THE BUSINESS MODEL FOR IMPLEMENTING ERP SOLUTIONS Initiation Planning Execution Transition & Close Monitor & Control Define Design Configure Test Deploy Educate Project Management Solution DeliveryProject Management Solution Delivery
- 4. AGILE ME THE GOAL — WHAT? Faster & Cheaper Approach Reduce Risk with incremental approach Deployment flexibility (Hosted, Saas, On-Prem) Avoid customization that prevents future upgrade
- 5. AGILE ME Schedule savings Cost savings Scope savings • Rapid deployment means a mix of: • Faster time to value and faster to go-lives – schedule savings • Lower total implementation, few hour and reduced travel – cost savings • Adjusted scope to focus on what clients need most and fastest – scope savings BENEFITS OF RAPID DEPLOYMENT APPROACH
- 6. AGILE ME ERP IMPLEMENTATION VS. APPLICATION DEVELOPMENT • Product Backlog vs. Solution Backlog • Coding vs. Configuration • Complexity of Business Requirements • Diverse set of skills required to complete ERP Processes • Need for support teams with various skill sets • Systems Administration • Security • Organizational Change Mgmt. • Quality Assurance / Testing • Training / Deployment 6
- 7. AGILE ME ADDRESSING THE CHALLENGES OF ERP AGILE ADOPTION • Identify a champion for agile • Integrate Organizational Change Management • Training for Agile • Training at all levels • Ability to apply agile techniques for all aspects of the project • Dedicate time to an accelerated schedule, faster than the standard model • Willing to prioritize resources to support a faster time-to-value • Make processing decisions quickly to meet project schedule • Provide staff to configure/test/validate • Dedicate executive sponsorship to the implementation • Dependency on legacy data – Data Conversion • End-to-End Solutions – Integration touch points 7
- 8. AGILE MEAGILE ME Key Ingredients of the Rapid Approach 8 Best Practice • Accept a prescriptive scope model and follow vendor’s recommendations including acceptance of pre-configured rules and validations—and product mix Value Stream Mapping • “See the flow” of your value stream and wastes in the flow • Amend business processes to maximize efficiencies in the system • Draw the future state • Prioritize activities needed to achieve the future state. Build & Release Incrementally • Structure project to deliver the solution incrementally • Release on a separate cadence
- 9. AGILE MEAGILE ME 9 Setup Analysis Build Deploy & Rollout • Baseline build based on best practices • Training • Value Stream Mapping • Solution Backlog • Release Plan • Sprint Backlog • Sprint Goal • Acceptance criteria • Walkthrough with stakeholders • Obtain signoff • Deploy configuration • Data Load • Knowledge Transfer • SIT • UAT • Cutover • Go-live support ERP Rapid Implementation Approach
- 10. AGILE ME WHAT IS A VALUE STREAM? A Value Stream is a fundamental thinking construct in Lean. Each Value Stream is the sequence of steps used to deliver value to the Customer. • “See the flow” of your value stream and wastes in the flow. • View all services from a system perspective. • Understanding both material and information flows of your value stream (Current State) • Draw a blueprint for LEAN transformation – the Future State Map • Prioritize activities needed to achieve the Future State. Lead time R E P E A T $ Trigger
- 11. AGILE ME WHY VALUE STREAM MAPPING ? • VSM helps to reduce workflow costs and steps. • VSM is a useful visual tool for optimizing your ERP system because it shows a complete view of your entire process at every level. • VSM provides an efficient and standardized way to identify waste in the production process and eliminate it. • The only truly effective way to implement Value Stream Mapping is to assemble a team of process stakeholders, study the process, record each step on large paper/poster board to plaster on a large wall, identify data streams and systems, and identify KPI (key performance indicators) for each step, while recording process & queue times. • Many customers discover that their existing ERP mods are not needed at all. Instead, they only masked poor processes that did not add value. 11
- 12. AGILE ME VALUE STREAM MAPPING PROCESS 12 Services family Create Current State Analyze Build Solution Backlog Create Future State SolutionBacklog Repeat 3days Services with common Process Steps consisting of all the data for your current process (resources, time, and quality for each step of the process) Find opportunities to improve things. Identify/Document Deltas & Gaps Update Business Models & Process Design Update Solution Backlog Prioritization
- 13. AGILE ME ERP FUNCTIONALITY TARGETED FOR VALUE STREAM MAPPING • Financial (GL, AR, AP, Asset Mgmt., Treasury) • Sales & Distribution (Prospects, Customer mgmt., sales order mgmt.) • Manufacturing (BoM, Routings) • Materials Mgmt. (Procurement, Inventory mgmt.) • Logistics (Warehouse Mgmt., Transportation Mgmt.) • Reporting • Business Rules (customization) • Workflow (Decisions making & approval points, Alert/warning rules). 13
- 14. AGILE ME Stakeholder Product Owner Solution team member Product Owner Vision Scrum Master Solution Backlog Potentially shippable solution Daily Stand-Up Sprint Sprint Review Burndown Charts Sprint Backlog Retrospective Sprint Planning Solution Backlog refinement AGILE BUILD : USE SCRUM TO BUILD SOLUTIONS Solution Increment
- 15. AGILE ME DEPLOY & ROLLOUT 15 E p i c E p i c SIT UAT Data Conversion Cycle I Data Conversion Cycle II Sprint2 Sprint3 Sprint5 Sprint6Sprint1 Sprint 4 R e l e a s e • Data conversion cycles are executed iteratively at a different cadence. • Integration Test & UAT are executed post release completion. • Multiple Go-live are possible. Data Conversion Cycle III Sprint2 Sprint3 Sprint5 Sprint6Sprint1 Sprint 4 Cutover SIT UAT Cutover