Erp governance methodology and case studies v rjt
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This document outlines a structured methodology for managing an ERP system through its entire lifecycle including selection, implementation, optimization, and maintenance. It discusses setting up an ERP governance program, selecting the right ERP through a multi-step process focusing on criteria and evaluation, launching the system in a phased approach starting with a pilot, optimizing processes on the new ERP, and establishing an ERP competency center for ongoing maintenance.
Erp governance methodology and case studies v rjt
- 1. CONFIDENTIAL AND PROPRIETARY Any use of this material without specific permission of Apri Technology Partners is strictly prohibited ERP Governance Methodology & Case Studies By
- 2. ERP Governance Reasons behind the choice of a new ERP system 2
- 3. ERP Governance Moving to a new ERP requires awareness and a structured approach 3
- 4. ERP Governance How to manage the entire ERP Life Cycle 4
- 5. How to select and deploy the new ERP Our Methodological Framework (1/2) 5
- 6. How to select and deploy the new ERP Our Methodological Framework (2/2) 6
- 7. Process and IS Review Focus on Process Model and Scope 7 Mapping the company processes, designing the reference template and deciding the scope for the ERP introduction is a key preliminary activity for the new ERP introduction 1
- 8. ERP Selection Structured Approach 8 2 STEP 1 «THINK» Design the ERP Selection process, by defining: • The process scope for each implementation phase • The Selection Criteria to drive the choice of the best ERP SW • The initial SW list • The company Business and IT team to be involved in the selection • The work plan STEP 2 «PREPARE» • Define and weight the «functional requirements» • Reduce the ERP vendor list, by applying filtering criteria • Prepare the RFP document to be sent to the SW Bidders • Engage the vendors and manage the internal communication • Review the work plan STEP 3 «EXECUTE» • Manage the interaction with the SW vendors, by receiving their responses and organizing the SW demos • Coordinate the scoring activity to be executed by the project team • Proceed with the ERP selection in two steps (Down Selection and Final Selection) • Finalize the contract with the selected vendor
- 9. ERP Selection Focus on the Selection Criteria and the Evaluation Scorecard 9 2 ERP “Quality” Which ERP fit better the “core business” process? Total Cost of Ownership Compare the costs to buy the licenses, to implement and to maintain each ERP in the selection process Business Risks Assess the risks related to each ERP in the selection process Business Benefits How much each ERP can improve the performance compared with the «As Is» situation (also considering the business evolution strategy)? Vendor Profile Which vendor is the most reliable and referred ERP supplier? This Criteria is typically preliminary to include the vendor in the Short List
- 10. ERP Launch Structured Approach 3 10 Organization 1 Program Organization Process Framework Roles & Responsibilities Program Governance Maintenance & Support Staffing Communication and Knowledge Sharing Cost and Resource Management Training Testing Solution Management 2 Methodology Template Methodology and Standards Deployment Methodology and Standards PMO Methodology and Standards 3 Partners* Sourcing Strategy RFP Templates Vendor Engagement Model Vendor Management Model 4 Tools Job Role Definition Demand Planning, Gap Analysis and Staffing Plan Staffing Execution 5 WW Executive Alignment Regional Orientation Orientation and Mobilization 6 Core Team Set-Up BBP/Pilot Preparation Vendor Selection Execution Program Strategy 0 * Only in case of multiple vendor sourcing strategy
- 11. ERP Implementation Structured Approach 4 11 Program Set-Up Conceptual Design (BBP) Pilot Implementation Roll-Out Waves Roll-Out Waves Roll-Out Waves • Select the system integrator • Share the methodology • Confirm the Program roadmap and the detailed budget • Anticipate the most urgent technical and infrastructure requirement for the ERP Installation) • Kick off the program • Define the ERP core solution, discuss in detail with the process owner in a designated series of workshop • Seek the solution formal approval • Design the TO BE environment architecture (technology and infrastructure) • Realize a functional prototype of the core solution • Implement the core solution in the pilot site • Build a kernel to be use in the subsequent program phases • Stabilize the system before activating the roll-out • Roll-out the template to the other Sites, with focus on the standardization and limiting the localization to the mandatory requirements • Setup the application maintenance Objectives Comments • The roll-out steps should consider the complexity of the AS- IS and the business evolution plan • Key factor is to have a strong business sponsorship and a group of accountable Process Owners • The template should cover the core processes and involve all regions and countries • The right pilot site should cover the majority of the processes but with limited complexity
- 13. ERP Maintenance Structured Approach 6 13 ERP Competency Center Design Maintenance Processes Design Service Provider Selection AMS Ramp-Up • Mission and span of responsibility • Organization: by process areas / regions / activity (projects vs. maintenance) • Roles and Responsibilities • Skillset map and gap • Demand planning and resource sizing • Staffing and Training Plan • Tickets Management (Incidents, Service Requests) • Operational Maintenance • Change Request Management • Project Management • Governance • Service Management • Resource Management • Cost Management • Sourcing Strategy • Service Provider Role and Responsibility Definition • Service Provider List • RFP Document Preparation and Issue • Service Provider Selection and Award • Service Provider Engagement and Management • Service Control Processes • Internal Staffing (Recruiting, Conversion, Training) Execution and Monitoring • Maintenance Organization Start-Up • Post Audit and Improvement Management Objectives Comments • The transition requires a detailed plan and a dedicated Transition Manager • The SAP CC set-up be activated before reaching a significant number of live countries • The AM activities must be carefully designed to be compliant to Audit requirements • SP selection and engagement is key for the future performance