Preparing for ERP? 9 Steps to Minimizing Mistakes and Maximizing ROI
- 1. Preparing for ERP? 9 Steps to Minimizing Mistakes and Maximizing ROI W E B I N A R S E R I E S T E A M W I T H T O D R I V E B U S I N E S S P E R F O R M A N C E I M P R O V E M E N T S
- 2. Today’s Agenda Ultra Overview Introduction A Story Industry Facts The Journey Best Practices Q&A
- 3. Presentation Guidelines Phones are muted. Q&A at end, last 5-10 minutes Please ask questions through WebEx Q&A. Other communications through WebEx Chat. Use ‘Raise Hand’ if you’d like to ask a question directly. Look to the right of your screen for a grey box with + or – to maximize or minimize your screen.
- 4. Today’s Presenter Ultra Consultants Confidential Jeff has OVER 40 YEARS OF EXPERIENCE in manufacturing and technology and is a leading expert on ERP vendors and ERP best practices. JEFF CARR C H I E F E X E C U T I V E O F F I C E R , U L T R A C O N S U L T A N T S CEO of 3 different Software Vendors: ERP “Best Seller” Founded Ultra in 1994 Extensive vertical industry experience: distribution and manufacturing Served over 1200 manufacturing and distribution organizations Author of industry leading ERP and BPI blogs
- 6. O ver 3 0 0 S u c c essfu l Projec ts 100% Focused on Manufacturing and Distrib u tion Head q u artered in Ch icago with Clients Th rou g h ou t North A merica Ultra’s Focus as a Valued Partner Industrial Equipment 20% Other 19% Consumer Goods 12% Industrial Supplies 12% Food & Beverage 8% Automotive 7% Chemical 7% Distribution 5% Electronics 5% Medical 5% Clients by Industr y Fou n d ed in 1 9 9 4 Under $50M 35% $50M-$200M 33% Over $200M 32% Clients by S ize
- 7. Areas of Expertise Business Process Improvement Technology Selection Solution Implementation Business Transformation BEST PRACTICES BUSINESS TRANSFORMATION LIFECYCLE
- 8. Your Independent Guide Through the ERP Landscape 1 0 0 % Ven d or In d ep en d ent 4 0 + Ven d or Relation sh ips 2 0 + Ven d ors S elec ted & Man aged ?
- 9. INTRODUCTION Preparing for ERP? 9 Points to Minimize Project Mistakes and Maximize ROI
- 10. Introduction Half of ERP initiatives fail to achieve expectations. What problems cause this failure? What are the best practices that help avoidance? First…a story…
- 11. A STORY Preparing for ERP? 9 Points to Minimize Project Mistakes and Maximize ROI
- 12. A Story Background • Mid-market manufacturer and distributor industrial supplies • Mixed mode manufacturing • Legacy ERP
- 13. A Story Background History 2006 Selected a new system (popular mid-market ERP for MTO) 2007-09 Worked on implementation; Many customizations 2009 Economic downturn, project on hold 2010 Project re-started; Legacy ERP retained for manufacturing 2012 Started conf. room pilots; Major failures revealed in CRP 5 Looked for consultant: Will it fit? Yes it will! Searched for implementation partner, hired one 2013 New team of analysts to work with implementation partner Ran into data conversion issues 2015 Stopped project to understand lessons learned
- 14. A Story Background History Key Decisions • 2010: Decision made that Manufacturing would stay in M2Kbecause the system worked fine for them • A partner was selected for implementation help
- 15. A Story Background History Key Decisions Lessons Learned • Anonymous survey conducted to inform on team perspectives • 53 responses 0 2 4 6 8 10 12 14 16 18 Executive oversight Future State Vision - defined and committed Lack of openness Managing change Project Management Staffing We chose the wrong product Pareto of Failure Reason Codes As reported by client staff in an anonymous survey
- 16. A Story Background History Key Decisions Lessons Learned Project execution: Project Execution Project Goals · Strategy was clearly stated at first · Lack of consensus on vision of the future · Confusion on whether IT or business transformation · Departments siloed in three different directions · Lack of understanding the critical path · Lack of agreed measures for success · Milestones more than 6-9 months apart Project Governance · Large Steering Committee with loose governance · Adopted vendor’s standard methodology at first · Lack of transparency in project status · Acceptance of cultural status quo · Data cleansing and load efforts underestimated · Late in understanding that alignment was missed · Overall project discipline was loose · Did not enforce corporate values Project Staffing · PM with limited exposure to PMI/Prince2 · Staff with limited expertise in ERP projects · Core team not allocated full time, backfill gap · BSA role transformed from Functional Rep to IT Rep · Late deployment of change agents · Not enough change agents, less than critical mass · Managers represented activities w/o expertise Project Methodology · Adopted vendor standard methodology first · Initiate phase was not executed · Project team alignment missed · Excessive customization due to conflicting goals · Lack of alignment of business processes · Wrong methodology used for data cleansing · Wrong tools used for data load · Missing Organizational Change Management · Missing Risk Management
- 17. A Story Background History Key Decisions Lessons Learned Software: Software Performance · Customization tools/controls · Sales Order Entry too slow · Performance integrity compromised by enhancements · Scalability · Insite Software · Progress layer Functional Fit · Selection gaps noted; Driven by migration · International wholesale distribution requirements not supported · Leverage MRP for material planning · FIFO needs · Cross-platform integration · Built new system without changing to best practices · Regulated product Data Migration · Data cleansing methodology flawed · System response time · Velocity data load · Data integrity · Data migration tools for ETL
- 18. A Story Background History Key Decisions Lessons Learned Culture: Culture Leadership · Inconsistency: Some diligent, some not · Relaxed oversight by steering committee · Company politics · Core values not reflected in leadership · IT project – entire team not engaged · Vendor not on steering team Communication · Worked in silos · Highlighting issues publically · Confrontation issues/corridor talks · Interdepartmental communication · Consultants didn t object enough Accountability · Anyone can change software w/o consequence · No repercussions for lack of delivery · Client always knows better · Didn’t use consultants effectively Vision · Project vision = replace legacy with new ERP, not business transformation or even best practices · More familiar with custom code · Company values not upheld · Project vision not uniformly internalized (replicate or change) · Entire team not engaged
- 19. INDUSTRY FACTS Preparing for ERP? 9 Points to Minimize Project Mistakes and Maximize ROI
- 20. Industry Facts • Ultra survey – What education, if any, does your organization need before starting an ERP project? Select questions and responses from Ultra Consultants survey: Q: What education, if any, does your organization need before starting an ERP project?
- 21. Industry Facts Select questions and responses from Ultra Consultants survey: Q: What education, if any, does your organization need before starting an ERP project? Q: Overall, how satisfied are you with the ability of your Enterprise Resource Planning (ERP) software to meet your organization's needs?
- 22. Industry Facts Select questions and responses from Ultra Consultants survey: Q: What education, if any, does your organization need before starting an ERP project? Q: Overall, how satisfied are you with the ability of your Enterprise Resource Planning (ERP) software to meet your organization's needs? Q: What improvements are you seeking with new ERP software?
- 23. Industry Facts Gartner research for 2016 Software • Global spend: • 2016: $332 billion • 2017: $357 billion
- 24. Industry Facts Gartner research for 2016 Software IT Services • Global spend: • 2016: $3.4 trillion • 2017: $3.5 trillion
- 25. Industry Facts Gartner research for 2016 Software IT Services CIOs • Need do drive digital ecosystem • Every organization needs a digital platform strategy • CIOs and IT leaders need to pledge to themselves to develop their "beginner’s mind", and rely less on outdated best practices.
- 26. Industry Facts Gartner research for 2016 Software IT Services CIOs CEOs • 50% of CEOs expect their industries to be substantially or unrecognizably transformed by digital • CEOs seem to be concerned about improving customer service, relationship and satisfaction levels. • More and more CEOs are choosing to head up digital change in their business. • "One explanation for CEOs' optimistic attitude toward digital change may be because they can see how it helps with the product innovations that matter to customers.”
- 27. Industry Facts Gartner research for 2016 Software IT Services CIOs CEOs Cloud • An integral part of IT. • A critical component in the move to digital business. • Now to the point where it is an expected approach to IT.
- 28. THE JOURNEY Preparing for ERP? 9 Points to Minimize Project Mistakes and Maximize ROI
- 29. The Journey Genesis • Talk • Identify pain - how bad is it? • Identify options • Costs - external and internal • Benefits • What is completion doing? • Is this a top initiative? • Executive buy in
- 30. The Journey Genesis Organize and Prepare • Team - internal and external • Governance • Plan - who, what, when • Get educated
- 31. The Journey Genesis Organize and Prepare Define Goals/Needs • Current State • Best Practices • Future State • Business Case - Value Statements • Project Charter • Transformation Roadmap
- 32. The Journey Genesis Organize and Prepare Define Goals/Needs Identify Solutions • Industry focus • Customers in your industry • Evaluation criteria
- 33. The Journey Genesis Organize and Prepare Define Goals/Needs Identify Solutions Evaluate Solutions • Interviews • Demonstration • Vendor due diligence • Negotiations • Prototype • Technology • Company • Agility - ecosystem • Implementation partner
- 34. The Journey Genesis Organize and Prepare Define Goals/Needs Identify Solutions Evaluate Solutions Partner with Vendor • Build relationships • Management commitment - both ways • Get involved with your vendor
- 35. The Journey Genesis Organize and Prepare Define Goals/Needs Identify Solutions Evaluate Solutions Partner with Vendor Implementation • Need comprehensive plan • Understand your responsibilities • Over reliance on vendor and their expectations
- 36. The Journey Genesis Organize and Prepare Define Goals/Needs Identify Solutions Evaluate Solutions Partner with Vendor Implementation Business Transformation • Value statements • Value projects • Success – document and communicate
- 37. BEST PRACTICES Preparing for ERP? 9 Points to Minimize Project Mistakes and Maximize ROI
- 38. Best Practices Success Governance Team Software Implementation Executive Alignment Steering Committee Project Management Risk Management Organization Change Management Project Charter Industry Focus Industry References Function Fit Future State Vision Established Process Owners Resource Plan Application Literacy Best Practices Knowledge Test Plan Educate Plan Data Migration Ownership Right ERP Partners Customization Plan Communication Identify Change Educate Benefits Realization Manage Change Value Statements Validate Analyze Confirm Enable/Mature
- 39. Best Practices Governance • Executive Alignment • Steering Committee • Project Management • Risk Management • Project Charter
- 40. Best Practices Governance Team • Established Process Owners • Resource Plan • Application Literacy • Best Practice Knowledge • Right ERP Partners
- 41. Best Practices Governance Team Software • Industry Focus • Industry References • Function Fit • Future State Vision
- 42. Best Practices Governance Team Software Implementation • Test Plan • Educate Plan • Data Migration Plan • Customization Plan
- 43. Best Practices Governance Team Software Implementation Organization Change Mgmt • Manage Change • Educate • Identify Change • Communication
- 44. Best Practices Governance Team Software Implementation Organization Change Mgmt Benefits Realization • Value Statements • Validate • Analyze • Confirm • Enable /Mature
- 45. Best Practices Governance Team Software Implementation Organization Change Mgmt Benefits Realization Success • Examples • Inventory • Productivity • Customer satisfaction - speed • Quoting • Production agility • Cost of quality
- 46. ADDITIONAL RESOURCES Preparing for ERP? 9 Points to Minimize Project Mistakes and Maximize ROI
- 47. Additional Resources – Ultra Education Library of informative white papers Case study success stories Monthly Industry Webinar Series Lunch & Learn Industry Insights OnDemand Webinars ultraconsultants.com/erp-education/ Make to Order Manufacturing Webinar Series September 12th – 14th Daily at 1pm CDT UPCOMING EVENTS ultraconsultants.com//events/ EXPERT INSIGHTS ERP Health Check – Is Your Business at Risk? September 21st at 1pm CDT SME - Smart Manufacturing Event Ultra President, Jeff Carr to Speak on ‘Real-World Scenarios in Transformation’ September 13th in Los Angeles, CA Cloud Webinar Series October 24th – 26th Daily at 1pm CDT
- 48. Contact Information DYLAN HOWARD Business Development Manager at Ultra dhoward@ultraconsultants.com 4 8 0 - 5 2 5 - 6 1 8 6 KRISTEN RENDA Marketing Program Lead at Ultra 4 1 9 - 3 4 9 - 7 0 3 1 krenda@ultraconsultants.com
- 49. QUESTIONS? Preparing for ERP? 9 Points to Minimize Project Mistakes and Maximize ROI
- 50. Thank You! W E B I N A R S E R I E S T E A M W I T H T O D R I V E B U S I N E S S P E R F O R M A N C E I M P R O V E M E N T S