The Science of Challenging Customer Requirements
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1 The Science of Challenging Customer Requirements Defining a repeatable process for vetting customer requirements for enterprise cloud solutions G.Brett Beaubouef, PMP, CISA ERP Cloud Success Manager
2 Agenda Starting the Conversation Common Blockers Science of Challenging Requirements Art of Challenging Requirements Consequences of Not Challenging Requirements Case Studies Summary Q&A
3 Background Grady Brett Beaubouef 20+ years ERP industry experience Multiple deployment roles across Consulting and IT Multiple deployment models: On Premise, Hosted, Hybrid, Offshore, Near shore, SaaS Published ERP author & blogger
4 STARTING THE CONVERSATION WITH GUIDING PRINCIPLES
5 Starting the Conversation (Guiding Principles) Lean ERP Customer Business Process Efficiency Reduce variations Not the guardians of best practices Best practices are not competitive practices Don t build an exception-based solution Not always right Will always best understand the business Revenue generating Revenue supporting Compliance True competitiveness comes from Revenue Generating
6 BLOCKERS OF CHALLENGING BUSINESS REQUIREMENTS
7 Blockers of Challenging Business Requirements You are not customer-focused You don t understand my business I need a flexible and adaptable solution You are making excuses for software gap I need a partner not a vendor
8 SCIENCE OF CHALLENGING REQUIREMENTS
9 Science (Process) 1. Gain permission 2. Lead by asking informed questions 3. Quantify the impact of the requirement 4. Drive accountability
10 Science (Process) Gain permission to challenge business requirements INVEST No one cares what you know until they know that you care. COMPETENT Know the core business process. Understand and communicate that you will never fully appreciate the business as well as the customer. LEAN Promote Lean principles to eliminate variations and improve cycle time (efficiency). OBJECTIVE Remove personality and passion from the equation. Quantify the results & impact a business requirement has on the end result.
11 Science (Process) Lead by asking informed questions ASSUMPTIONS PRESPECTIVE Value Add Business Requirements MAIN BUSINESS SCENARIO ANALYTICAL INNOVATIVE
12 Science (Process) Quantifying the Impact Characteristic Competitive Advantage Efficiency Effectiveness Differentiator Cost Reductions Cycle Time Reductions Evidence Requirement should be noted as an advantage in your sales presentation. Doing work cheaper. Are there documented results of cost reductions or is this an opinion? Doing work smarter. This should result in less product defects resulting in high quality and promoting a competitive advantage. Do your customers see this requirement as a unique value proposition? Cost reductions provides the potential for greater business value if the opportunity is exploited. Functional cycle time reductions are of little value if they do not have impact on holistic business process cycle time.
13 Science (Process) Quantifying the Impact
14 Science (Process) Drive Accountability Gather and Validate Requirements across a Business Process Visibility promotes accountability No pressure like peer pressure
15 ART OF CHALLENGING REQUIREMENTS
16 Art of Challenging Requirements (Fuzzy Logic) Emotional Intelligence Building Relationships Transparency Purposeful
17 CONSEQUENCES OF NOT CHALLENGING REQUIREMENTS
18 Consequences ERP/COTS makes for an expensive custom solution Legitimate needs for customizations Competitive practices Missing best practices Emerging compliance requirements Exception-based design results in greater costs and maintenance Implementation partners & IT waste time/effort pursuing non-value-add requirements
19 CASE STUDIES
20 Case Study #1 Happy Path Situation Customer was moving ERP from on premise/customized solution to a public cloud ERP solution. It was too costly for the customer to upgrade their on premise ERP solution due to intrusive customizations. Task Successful go-live and customer reference. Action Empathized. Educate vs Governance. Made the Subjective Objective. Result After several attempts the customer went live. Customer is a product and cloud service reference. Customer reduced IT expenditures by 25%.
21 Case Study #2 Can t Win Them All Situation Customer was moving ERP from on premise/customized solution to a public cloud ERP solution. Usability customization requested by the VP of Human Resources. Task Successful go-live and customer reference. Action Increased visibility at the business process level. Leveraged peer pressure at the peer and executive levels. Did not make it an ultimatum. Result Made customization to ERP Cloud offering to support same functionality in duplicate systems. Customer understands the impacts/efforts/limitations with customization. Customer is a product reference.
22 SUMMARY
23 Summary Challenging requirements is both an Art and Science Business requirements drive business results Provide relevant information for informed decisions Accountability is not assigning blame Support the final decision as a partner/enabler
24 QUESTIONS & ANSWERS
25 Additional Resources ERP Project 101: Challenging ERP Requirements Developing a Business Case for ERP Customizations Reverse Engineer to Business Requirements EPIC Methodology for COTS
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