Resource Planning (ERP)

Transcription

1 ELEVATING OUR PROFESSIONALISM Enterprise 48 TH ANNUAL CONFERENCE MAY 17-20, 2015 ORLANDO, FLORIDA Resource Planning (ERP) Don t get Rattled! By Roman Martinez, MPA, CPPO, CPPB

2 WHAT IS AN ERP? Enterprise Resource Planning or as we know it ERP What is it, what does it do? An ERP is a business management software which usually includes a suite of integrated applications that a company/agency can use to collect, store, manage and interpret data from many business activities, including: Product planning Budgeting Finance Purchasing Asset Management Auxiliary Services Freight and Delivery Human Resources Students (Edu)

3 ENTERPRISE RESOURCE PLANNING ERP

4 REASONS WHY AN AGENCY WOULD PROCURE A NEW ERP SYSTEM Existing platforms become outdated and obsolete ERP Solves IT Multi-Platform Issues Promotes Competitive Environment Integrates finance, sales and production into one main platform thus allowing for decreased errors and wasted employee time trying to fix problems, or find needed information. Availability of information Increases and Improves Interaction Faster response times and increased interaction across the organization as a result of streamlining processes Feasible and efficient ways of running day-to-day work flow processes. With a functioning ERP in place, your business can solve critical issues that can become detrimental to the organization s bottom line, if left unchecked.

5 SO WHAT S THE FIRST STEP? First step in procuring am ERP System is to hire a Consultant to provide Process Mapping Services What is Process Mapping? This mapping phase is a daunting challenge. It requires a step-by-step, process level understanding of how each affected work-related task is accomplished today ( As Is ) and of how each of those tasks will be accomplished in the future ( To Be ). In summary, the Consultant will take a snapshot of how the organization does its process flow systems processes throughout the organization

6 SCOPE OF WORK DEVELOPMENT It is recommended that your agency utilize the services of a Consultant to prepare your Scope of Work (SOW). Scope of Work should include: Critical Requirements Functional Requirements Technical Requirements Their should be input by every stakeholder that will be utilizing the system

7 ERP PRE-PREPARATION Select a Steering Committee Committee members should be stakeholders from all levels of the agency Select a Project Team comprised of the following as Subject Matter Experts (SME s): Technical Representatives Functional representatives Financial Representatives

8 SEVEN DISTINCT AREAS OF EVALUATION REQUIREMENTS 1. Functionality Requirements Critical Requirements Functional Requirements Technical Requirements 2. Functionality Requirements DEMO 3. Cost Proposal 4. Services 5. Viability 6. Vision 7. References

9 SELECT THE PROPER METHOD OF PROCUREMENT Request for Proposal (RFP) Invitation to Negotiate (ITN) Request for Letters of Interest (RFLI)

10 SAMPLE EVALUATION CRITERIA The Evaluation Criteria of your formal solicitation should address the key areas that are important to your institution. Attached is sampling: Functionality Requirements Critical Requirements Functional Requirements Technical Requirement Functionality Requirements Demo Cost Proposal Services Viability Vision References

11 STAKEHOLDER FEEDBACK Allow feedback from the functional and user group teams During the Pre-planning of the ERP utilize the input of your user group teams, including the Subject Matter Experts (SME s) During the Evaluation of Proposals, utilize the feed back of your Subject Matter Experts (SME s) During the scheduled DEMO s, utilize your Subject Matter Experts (SME s) to evaluate the demos and ask specific functional questions During final ranking of proposer s utilize the input of your Subject Matter Experts (SME s)

12 FORMAL SOLICITATION PERIOD Make sure you have a list of potential proposers List of prospective proposers may be provided by the Consultant List of prospective proposers may be provided by the institutions stakeholders List of prospective proposers may be provided by professional associations or cooperative groups Hold a pre-proposal meeting Utilize this venue not only to answer questions related to the scope and required forms to be submitted but to verify if the scope of work is attainable. Allow an Q and A period with a deadline to send in those questions. Respond to question via issued addendum. Open all submitted proposals and determine responsiveness of each proposal received.

13 FORMAL SOLICITATION PERIOD Make sure you have a list of potential proposers List of prospective proposers may be provided by the Consultant List of prospective proposers may be provided by the institutions stakeholders List of prospective proposers may be provided by professional associations or cooperative groups Hold a pre-proposal meeting Utilize this vent only answer questions related to the scope and required forms to be submitted with proposal but to verify if the scope of work is attainable. Allow an Q and A period with a deadline to send in those questions. Respond to question via issued addendum. Open all submitted proposals and determine responsiveness of each proposal received.

14 EVALUATION OF PROPOSALS PERIOD Make sure that the following groups are available for attendance to one or all scheduled Evaluation, Demo and Final Evaluation and Ranking Meetings: ERP Steering Committee Purchasing Facilitating Group Subject Matter Experts ERP Consultant Schedule Evaluation of proposals from the Subject Matter Experts (SME s), these may include the following services areas: Critical Requirements Functional Requirements Student System Financial Aid System Finance System HR & Payroll System Technical Requirements

15 EVALUATION AND SHORTLIST PERIOD Schedule a meeting for SMEs to provide their opinion and observations to the ERP Steering Committee of the proposals submitted Each SME Group should schedule their meetings separate from each Group. The goal of the SME s is to provide pros and cons of each proposal submitted, no ranking is required Each SME Group should have their pros and cons and recommendations ready to be presented to the Steering Committee After receipt of the SMEs input have the ERP Steering Committee provide their ranking of proposals received After proposal have been ranked determine if any shortlist should be decided, if so, schedule demo s with the shortlisted proposers.

16 DEMONSTRATION (DEMO) PERIOD Run demo sessions with shortlisted proposers and all stakeholders to include: ERP Steering Committee Subject Matter Expert (SME) for each departmental area. ERP Consultant Purchasing staff/facilitators Make sure you provide sufficient time for shortlisted proposers to provide their demos including enough time for Q & A sessions Allow a period after the demos for clarifications and/or submission of any additional information

17 FINAL SELECTION PERIOD ERP Steering Committee to receive all opinions and recommendations from SMEs and ERP Consultant ERP Steering Committee to provide final ranking based on the following: Selection Criteria Input from all SMEs during the proposal review and demos Input from ERP Consultant

18 FINAL SELECTION PERIOD (IF ITN) Partial ERP Steering Committee members selected to provide final negotiations Negotiation Team should address the following: Total Cost of Ownership Hourly Rates for Training Itemized system modules to determine if which ones will be purchased Determine any cost savings as a result of the negotiations Have the proposer submit a sample contract with Terms and Conditions Important to Note; run simultaneous negotiations with each shortlisted proposers

19 FINAL RANKING & SELECTION (IF ITN) Request a Best and Final offer (BAFO) from all shortlisted proposers Evaluate the BAFO and prepare a report for the Steering Committee Negotiation Team to provide the Steering Committee a recommendation of each proposer s financial and services which provides the best option for the institution Steering Committee to Rank all the Shortlisted proposers and recommend the award to the highest ranked proposer Prepare the formal recommendation to your governing body to ratify the final selection Upon ratification form your governing body; prepare final contract and secure all required authorized signatures

20 FEW FINAL NOTES The ERP procurement process in a lengthy, heavy resource as well as detailed technical process, make sure you allot sufficient time, resources and staff to make sure you are successful The procurement and selection of your ERP system is just but one step in the process, only the tip of the iceberg An ERP selection is all about clear lines of communication, gathering of information and decision making Upon completion of your ERP selection, plan to start the same process to select an ERP Implementation Consultant