Manufacturing Industry ERP & Financial Systems Update May 2015

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1 Manufacturing Industry ERP & Financial Systems Update May 2015 J. T. Hardy, MBA, CMA Sassan S. Hejazi, Ph.D. #SuperConf15

2 Agenda - Industry Challenges - Management Imperatives - ERP/Financial System Fundamentals - Key Solution Providers - Solution Fitness - Organizational Readiness - Kreischer Miller ERP Alliance #SuperConf15

3 Industry Challenges 1. Fierce Competition - Globalization Effect 2. Profit Margin Pressures 3. Customer Demands 4. Redefined Supply Chains 5. The Quest to Add Value 3

4 Management Imperatives (1 of 2) (1 of 2) Need to measure in order to manage Strategic few vs. trivial many Manage data overload Information versus data Share information across the organization No silos Ease of information presentation Self service vs. report writing 4

5 Management Imperatives (2 of 2) (2 of 2) Agility to respond to changing conditions Month end reports vs. trends during the month Ability to collaborate and leverage knowledge Finance..scorekeeper or partner? IT.. obstacle or enabler? 5

6 What is an ERP System?? ERP systems are a set of software tools designed to enable businesses in their journey towards increased performance. ERP system concepts, although started in manufacturing and distribution, are now being applied across industries, ranging from services to non-profits. 6

7 ERP Business Implications Organizes and manages a company s business processes by sharing information across functional areas. Connects with supply-chain and customer management applications. Provides a single version of truth along the value chain! 7

8 Solution Components (1 of 2) 8

9 Solution Components (2 of 2) Customer Relationships (CRM) Production & Operations Supply Chain Management (SCM) Human Resources (HRIS) Accounting & Financial Management Analytics and BI 9

10 CRM Components Lead & Prospect Management Customer Sales Management Catalogs & Brochures Marketing/Tradeshow Campaigns Sales Planning/Forecasting Customer Service Functions 10

11 Production/Operations Components Product Master Data/Life Cycle Production/Capacity Planning Shop Floor Scheduling/Execution Material Requirements Planning Work Order Management Quality/Safety Management 11

12 Supply Chain Components Procurement/Purchasing Inventory Management Warehouse Management Outsource Operations EDI Applications Supply Chain Optimization 12

13 Accounting/Finance Components Core accounting modules A/R, A/P, G/L Payroll, T/E Budgeting & Planning Fixed Assets Sales & Use Tax Support 13

14 HRIS Components Recruiting Employee Data Management Time & Attendance Evaluations & Reviews Benefits Management Regulatory/Compliance Reporting 14

15 BI/Analytics Components Reporting Sales/Marketing Operations Financial HR Management Dashboards Data Analysis 15

16 ERP Maturity Model Started for Automation Moved onto Integration Focus now on Collaboration Value Chain Realization 16

17 ERP System Directions Increased utilization of the cloud Saas license Model Interface Standardization Best of Breed Integrations Enable Leverage of Data Assets Analytics 17

18 Key Players (1 of 3) SAP R3/MySAP, Biz One Oracle EBS/PeopleSoft/JDE/Siebel Microsoft Dynamics AX, GP, NAV, SL, CRM 18

19 Key Players (2 of 3) Sage MAS/ERP 100, 300, 500, X3 INFOR LN, SyteLine, Lawson, M3, Visual, Macolla, FACTS Aptean/Consona - Intuitive, Made2Manage EPICOR - Activant/Eclipse/Prophet IFS 19

20 Key Players (3 of 3) Netsuite PLEX Acumatica Syspro QAD Niche Players ProcessPro, Deacom, Batchmaster, Exact, Jaas, Deltek, Intacct 20

21 Current Hot Button Items (1 of 2) Real-time Reduced batch processing Dashboards Management performance Paperless Get rid of paper forms Portals Customer/vendor/sales access Maintenance Ease of upgrades Utilization Heavy emphasis 21

22 Current Hot Button Items (2 of 2) Graphical Production Scheduling Integrated Warehouse Management Shop Floor Data Acquisition Integrated Quality Management Product Planning & Costing Budgeting & Forecasting 22

23 Which Solution is the Right Fit? (1 of 2) There is no one solution that fits all companies in a single industry! Solution fitness depends on several factors such as: Existing capabilities (human, IT and $$) Future plans & directions Organizational characteristics 23

24 Which Solution is the Right Fit? (2 of 2) POINTS GOAL SCORE 0 CUSTOMERS SUPPLIERS COMPETITION PEOPLE PROCESS INNOVATION DIMENSIONS TECHNOLOGY FINANCIAL 24

25 Solution Readiness Checklist (1 of 5) Many instances of same data being handled by different departments in different formats (manual and electronically)? Lack flexible, real-time, reporting and effective performance management capabilities? 25

26 Solution Readiness Checklist (2 of 5)on Readiness Need improving business processes through reducing non value-add activities and improving quality and efficiency levels? Extensive use of internally or externally developed customized applications and integrations? 26

27 Solution Readiness Checklist (3 of 5) Readiness Checklist Use of several different packaged applications that are not well integrated with one another? Outdated applications with difficult support for web based customer, supplier and employee information & reporting needs? 27

28 Solution Readiness Checklist (4 of 5) Availability of an empowered project team that can invest substantial amount of their time in the ERP project? Availability of appropriate external resources to assist the internal team with effective solution implementation and change management challenges? 28

29 Solution Readiness Checklist (5 of 5) Willingness to change/streamline key business processes and applicable employee roles and responsibilities? Management s financial & organizational support to facilitate changes due to introduction of new software enabled business capabilities? 29

30 Kreischer Miller Best Fit Solution Roadmap Strategic & Tactical Analysis Selection & Design Pilot Development Train & Test Cutover Cont. Improvement Solution Planning Phase Solution Implementation Phase Post Implementation Phase Integrated software & process design and development Page 30

31 Kreischer Miller ERP Services Integrated Business & IT Planning ERP Assessment & Planning Solution Shortlist Management Implementation Advisory Services Change Management Support Project Rescue/Recovery 31

32 Kreischer Miller ERP Alliance Designed to assist clients of other CPA and Advisory firms with their clients ERP projects. Kreischer Miller professionals leverage clients advisor's trusted relationship to inject high quality ERP Advisory services in a highly collaborative fashion. 32

33 ERP Alliance Engagement Protocol (1 of 2) Alliance partner identifies opportunity and alerts Kreischer Miller. Kreischer Miller professionals review client background with alliance partner to quality opportunity. Once qualified, alliance partner sets up an introductory call with Kreischer Miller and the client. Upon client request, Kreischer Miller will be developing project presentation and engagement letter with close consultation with alliance partner. Kreischer Miller will arrange for a web meeting with client, review proposal and address client questions/concerns. 33

34 ERP Alliance Engagement Protocol (2 of 2) Upon proposal approval, Kreischer Miller would schedule applicable on-site discovery sessions in close collaboration with alliance partner. Kreischer Miller will be sharing all work documents with alliance partner for review and feedback to ensure critical business requirements are being addressed. Kreischer Miller will be keeping alliance partner updated on all key aspects of the engagement. Kreischer Miller will keep alliance partner updated on all subsequent meetings, site visits and recommendations. 34

35 THANK YOU! Feel free to contact your Kreischer Miller team for assistance with your manufacturing client ERP related needs. 35

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