ERP IMPLEMENTATION BOOT CAMP
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1 ERP IMPLEMENTATION BOOT CAMP The Manufacturing ERP Experience Sponsored by MetalForming Magazine April 8-9, 2014 Eric Kimberling Managing Partner and Founder Panorama Consulting Solutions Phone:
2 About Panorama Consulting Solutions The world s leading independent ERP consulting firm Key Service Offerings IT Strategy ERP Evaluation and Selection Implementation Organizational Change Benefits Realization Business Process Management Expert Witness Our Team Global base of consultants 20+ years of industry, consulting, and/or vendor experience Six Sigmas, MBAs, PMPs, APICS 360 ERP Certified Offices Boston Chicago Denver Dubai San Francisco 2
3 Agenda: MetalForming ERP Boot Camp Purpose of this Session Overview of the current state of ERP implementations Best practices to ensure ERP success Where to learn more Questions? 3
4 Purpose of this Session Provide an introduction to ERP selection and implementation best practices Summarize some of the general keys to ERP success Learn from the lessons of peers in your industry Provide concrete next steps to tee you up for success 4
5 Agenda: MetalForming ERP Boot Camp Purpose of this Session Overview of the current state of ERP implementations Best practices to ensure ERP success Where to learn more Questions? 5
6 The Bad News: ERP initiatives are challenging for most manufacturers 6
7 Most ERP Implementations Don t Deliver as Expected Source: Panorama Consulting s 2014 ERP Report Copyright 2014 Panorama Consulting Solutions 7
8 Implementation Budget/Costs Source: Panorama Consulting s ERP Reports Copyright 2014 Panorama Consulting Solutions 8
9 The Good News: Every company and every project team will be successful if they follow some simple best practices. 9
10 Agenda: MetalForming ERP Boot Camp Purpose of this Session Overview of the current state of ERP implementations Best practices to ensure ERP success Where to learn more Questions? 10
11 A successful ERP initiative begins with a well-defined IT and systems strategy. 11
12 Assessing Your Strategic Direction Business Process and OCM Strategic Vision Infrastructure Org Readiness Assessment As-is Processes Benefits Realization Solution Architecture Physical Infrastructure Data Integration Software Apps ERP CRM WMS HCM SCM 12
13 Creating Your Strategic Roadmap Strategic Alternatives Cost-Benefit Analysis Business Process and OCM Strategic Vision Org Readiness Assessment As-is Processes Infrastructure Solution Architecture Physical Infrastructur e Data Software Apps ERP CRM WMS HCM SCM Strategic Roadmap Benefits Realization Integration Recommendations 3- to 5-Year Roadmap Don t forget to consider potential minor adjustment and low-risk scenarios! 13
14 Example of Systems Strategic Decision On-premise versus best of breed? Single, Onpremise ERP Solution Crisis of Standardization and Integration Crisis of Burden, Risk, and Overhead Best of Breed Applications 14
15 Another Example Tier I vs. Tier II ERP systems? High need for IT control + IT as competitive advantage Tier II, Tier III, Best of Breed Tier I On Premise Low organizational complexity, size, global presence Software as a Service (SaaS) Tier I Hosted in the Cloud High organizational complexity, size, global presence Little need for IT control + IT as a commodity 15
16 Understand why your current software isn t working. 16
17 Misalignment of ERP Systems Initial Requirements Initial Implementation Misalignment between ERP system and business requirements 17
18 Understand that ERP is about your business, not the technology. 18
19 ERP: Business vs. Technology Implementation Approach Technical Approach Slam in the system; Just get it done Business Approach Implement quickly, but take the time to get it right Designing the System Define technical requirements Define business process requirements Training System transaction training Process and workflow training; Vs. emphasizing ERP system as an enabler of those processes Measures of Success Minimize technical bugs Minimize disruptions to business & maximize business results Organizational Change Management Train to use the system Build a variety of employee buy-in, communications, and learning tools Best Practice 19
20 Business process reengineering should happen before, not after, you start implementing your ERP software. 20
21 Business Process Reengineering Is an Iterative Process Implementation: Transactional Processes Go-live: Process and System Training Future State Processes Blueprint: Business Process Reengineering Selection: Business Requirements Current State Processes 21
22 Successful ERP implementations require much more than software preconfigurations or best practices. 22
23 Three Levels of ERP Best Practices Implementation Complexity, Time, and Cost Little use of best practices 50-60% use of best practices 60-75% use of best practices Competitive Advantage Advanced ERP modules and solutions Customization and Integration to other systems Typically focused on market-facing enhancements Examples: CRM, social marketing, ecommerce, forecasting Industry Differentiators Unique to industry Source of competitive advantage Typically focused on managing internal costs Examples: Supply chain management, procurement Basic Functionality Non-differentiators, common across industries Not a source of competitive advantage Typically related to overhead functions Examples: accounting, GL, order entry Accounts for most of the unpredictability and risk of ERP implementations 23
24 Successful ERP implementations require effective organizational change management. 24
25 Change is Never Easy 25
26 ERP Project Life Cycle Life Cycle Software Selection Implementation Services Organizational Change Management Stakeholder Analysis and Executive Alignment Marketing and Communication Benchmark Assessment KPI Validation Blueprinting Technical Support Business Process Management Blueprinting ERP Configuration Cutover Organizational Readiness Vendor Evaluation Contract Negotiations Organizational Design Reports, Interface, Extension and Conversion Development Data Conversion Roles and Responsibilities Matrix, Sourcing, Transition Planning Training Training Delivery IT Strategy Risk Assessment Training Strategy Training Design Develop Training Materials and Plan Post Implementation Support Performance Mgmt / Benefit Realization Audit Business Case Benefits Realization Technical Activity Bus. Activity 26
27 Realistically define your ERP finish line. 27
28 Three Phases of ERP Competitive Advantage & ROI Business Benefits and Competitive Advantage 72% of ERP implementations* Software focus Phase 0: Legacy System Broken business processes Misalignment with business requirements Technological obsolescence ERP Phase 1: Go-Live Core functionality Embedded best practices Industry preconfiguration Limited alignment with competitive edge Time ERP Phase 2: Competitive Edge Advanced modules & functionality Third party bolt-ons Reporting & analytics Business process improvements Customization ERP Phase 3: Results & ROI Fine-tuned business processes Fully leveraged functionality Superior ability to analyze and execute 28% of ERP implementations* Business process re-engineering and organizational change management focus 28
29 Carefully manage software customization. 29
30 ERP Customization Level 30
31 Executive buy in is arguably the most important key to ERP success. 31
32 What Does Executive Buy-in Mean? Approve project budget Project status Assemble steering committee Approve changes to scope Key business decisions Approve software customization 32
33 How Frequently is it Achieved? 33
34 Select the PERFECT software for your organization. 34
35 Fast and Effective ERP Evaluation Negotiation results ERP Vendor Database Expertise of 150+ ERP Systems Company fit Hands-on experience Your current and future needs ERP System PERFECT Fit Certified ERP guidance 35
36 Focus on the Big Picture Sample differentiating business requirements from past metal industry clients Ability to alert floor to spec changes in WIP Ability to create and utilize R&D generic recipe template Ability to retrieve scrap inventory history for any given heat number Ability to track, and apply, all costs associated with outside processing (paint, coating, cutting, slitting) Ability to combine and track multiple Bills of Lading under one Load Number] Ability to handle rail and crane transport/handling. Location-specific inventory planning and forecasting to manage inventory for outside processors/suppliers Ability to plan a cut to length job (flat rolled sheet), slit job, spin job, and shear job. Ability to optimize the production planning with slit jobs from widest to thinnest. Ability to provide statements of melt origin and/or country of production info on the certificates 36
37 Agenda: MetalForming ERP Boot Camp Purpose of this Session Overview of the current state of ERP implementations Best practices to ensure ERP success Where to learn more Questions? 37
38 Learn More Download at: 38
39 Agenda: MetalForming ERP Boot Camp Purpose of this Session Overview of the current state of ERP implementations Best practices to ensure ERP success Where to learn more Questions? 39
40 Questions? Eric Kimberling Managing Partner Panorama Consulting Solutions Consulting.com Office: ERP x102 40
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