ERP Application Strategy Roadmap for Greater Business IT Alignment Process and Case Study
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1 ERP Application Strategy Roadmap for Greater Business IT Alignment Process and Case Study Mike Curtin, Fusion Oracle Products Practice Manager April 8 th,
2 Pinpoint Solutions for Project Driven Enterprises PeopleSoft Oracle Fusion Applications Oracle Business Intelligence Cloud Services Strategic Consulting Internal creation of ERP vision and strategy ERP application strategy roadmap Copyright 2013, Cardinal Point Solutions, LLC. All rights reserved.
3 Agenda What is an ERP Application Strategy Roadmap? Building an ERP Application Strategy Roadmap Utilizing the ERP Roadmap for Greater Alignment Q & A
4 ERP APPLICATION STRATEGY ROADMAP ERP Application Strategy Roadmap BUSINESS PERSPECTIVE IT PERSPECTIVE Business Priorities IT Goals & Standards Improvement Opportunities Potential Business Value Unmet Need ERP Application Strategy Solution Costs & Training ERP Solution Gaps IT Automation Business Needs Current Services, Costs, and Risks Generic Framework
5 Building ERP Application Strategy Roadmap S1.Define Business Goals, Strategies, Needs S6.Combine Business/IT Priorities S2.Inventory Current ERP Solution S5.Assess Cost, Risks, Dependencies S3.Define Gaps, Duplications, Inefficiencies S4.Prioritize Business Needs
6 S1. Building Bridges to Technology Business Objectives Strategies Business Processes Business Requirements Grow Revenue Strategy #1 Strategy #2 ERP Function #1 ERP Function #2 ERP Function #3 Business Task#1 Strategy #3 Maximize Existing Asset Utilization Strategy #4 Strategy #5 ERP Function #3
7 S2. ERP Feature Checklist
8 S2. Business Priority and Maturity
9 S2. ERP Solution Inventory (People)
10 S2. ERP Support Assessment
11 S3. TECHNOLOGY GAP ANALYSIS S3. Technology Gap Analysis Business Objectives Strategies Business Processes Grow Revenue Strategy #1 Strategy #2 Business Requirements ERP Function ERP Function ERP Function Business Task Current IT Systems PeopleSoft Overlap Legacy Order Capture Strategy #3 Gap Maximize Existing Asset Utilization Strategy #4 Strategy #5 ERP Function Fusion Data Integrity Salesforce
12 S3. S4. TECHNOLOGY PRIORITIZE BUSINESS GAP ANALYSIS NEEDS S4. Prioritize Business Needs MISSION VISION PPM Tools <> Alignment A vision can have different interpretations OBJECTIVES STRATEGIES PROGRAMS Business leads and Technology supports Common perspective & language is best PROJECTS
13 S4. PRIORITIZE BUSINESS NEEDS S3. TECHNOLOGY GAP ANALYSIS S4. Use Business Cases to Support Prioritization Problem Solution Approach Risk Value What is the problem we are trying to solve? What is the business opportunity? How can we address the problem or take advantage of the business opportunity? What are the viable options available to implement the solution? What are the risks associated with each option? What is the risk of doing nothing? What business value is generated from each option?
14 S4. PRIORITIZE BUSINESS NEEDS S3. TECHNOLOGY GAP ANALYSIS S5. Assess Costs, Risks, Dependencies Business Benefits License Costs + Maintenance Costs + Implementation Costs + Upgrade Costs Observations Upgrades & Maintenance Costs are hard to calculate Integration can cost 8 to 10 times ERP software costs
15 S4. PRIORITIZE BUSINESS NEEDS S3. TECHNOLOGY GAP ANALYSIS S6. Combine Business/IT Priorities Method 1 Method 2 Business Priorities IT Priorities Collaboration Shared Strategies Priorities Method 1 is an exercise in frustration (working hard) Method 2 is a more viable, long-term approach (working smart)
16 S4. PRIORITIZE BUSINESS NEEDS S3. TECHNOLOGY GAP ANALYSIS Driving Greater Alignment ERP Roadmap ERP Feature Checklist Use the roadmap as an exercise to correct tactical misalignments 1st iteration - IT 2nd iteration Business Highlight differences and educate to bridge gaps
17 S4. PRIORITIZE BUSINESS NEEDS S3. TECHNOLOGY GAP ANALYSIS Driving Greater Alignment ERP Roadmap Business ERP User Requests Objectives Strategies Application Enhancements Grow Revenue Maximize Existing Asset Utilization Strategy #1 Strategy #2 Strategy #3 Strategy #4 Strategy #5 Tactical Alignment Is The Challenge Batch/Job Requests Bug/Defects Configuration Data Cleanup General Information Outage Reporting Maintenance Requests User Administration
18 S3. DRIVING S4. TECHNOLOGY PRIORITIZE GREATER BUSINESS GAP ALIGNMENT ANALYSIS NEEDS ERP SCORECARD Driving Greater Alignment ERP Scorecard
19 S3. DRIVING S4. TECHNOLOGY PRIORITIZE GREATER BUSINESS GAP ALIGNMENT ANALYSIS NEEDS ERP SCORECARD Driving Greater Alignment ERP Scorecard Business Process Alignment Assessment Understanding how ERP features support business results (context) ERP module features support functional activities Functional activities support business processes Business processes produce business results
20 S3. DRIVING S4. TECHNOLOGY PRIORITIZE GREATER BUSINESS GAP ALIGNMENT ANALYSIS NEEDS ERP SCORECARD Summary An ERP Strategy Roadmap is a on-going exercise to align business strategy with COTS technology Education is a key result from roadmap activities Understand the role technology plays in driving results
21 For More Information Mike Curtin Fusion Oracle Products Practice Manager Does your team need a replay of this session? Let us know. We ll schedule it! Follow us Cardinal_Point
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