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Transcript of ERP Overview
What is it &
what does it mean...
What is it?
Enterprise Resource Planning, or ERP was a term coined by the research firm Gartner in the 1990's & used to describe a solution that integrates enterprise-wide processes, functions & data into a single system.
It, in theory, can be software as simple as 'Quick Books' (comprising payroll & accounts), or a fully integrated solution meeting the Manufacturing, Supply, Finance, Payroll, Human Resources, Fixed Assets, Contract Management, Business Intelligence, Customer Relationship Management (CRM) and Project Management requirements for a global, or multi-national enterprise/corporation.
But we have some of these components already...
Finance & Procurement - AX
Payroll - Pay Global
HR - Externally hosted & internal systems
Contract Management - via SharePoint
Invoice processing - Medius Flow
Business Intelligence - QlikView
CRM - Raisers Edge (Foundation)
What does it include?
How & why is ERP different?
What does that mean?
So why doesn't everyone do this?
So how do we determine if this is what we need?
True - but they operate (for the most) either independently, or via custom interfaces & look something like this...
Reduction in 'functionally-specific' & disparate software solutions
Integration vs. interfacing
Configuration vs. customization
A single source of truth
Efficient use of, control & access to, data
Applications operate in isolation
Heavy dependance on interfacing
Multiple sources of similar data
Managing access to data is difficult
Overall data visibility is poor
Application upgrades are complex
Process workflows are disjointed
Ability to grow is severely impeded
Preparation of an ERP Strategy will allow us to define its scope & identify where & how it supports our Strategic Objectives
Opportunity to leverage system-inherent 'best, or proven, practices'
Simplified, efficient, workflow-supported & integrated processes
Elimination of duplicate data entry
Caters to, & supports organizational growth
Breaks down traditional silos & promotes cross-functional, multi-disciplinary teams
Dictates strong financial data control, visibility & reporting
Validating investment to install & run (Business Case will identify TCO & ROI)
Re-visiting & re-engineering existing business processes (ERP Strategy will test & validate this)
Limited ability to customize (but this should be avoided anyway)
Executive endorsement - this is as much about change as it is about technology
Nomination of subject matter experts
External expertise to guide, question & audit
An initial, high-level business case will provide the mandate to fully investigate ERP by identifying the expected benefits & metrics
We need to fully understand the ERP 'journey' & what it means - the before, during & after as well as who'll use it & how?
...or something in between
the key themes here are
"Enterprise & Integrated"
Question - what's right & wrong with our current systems & processes?
... if you had to define your ideal solution, what would it look like?
Provide an overview & insight into what ERP is; its benefits & its challenges
Acknowledge where we are & what that looks like vs. where we want to go & why
Provide a framework & recommendations to guide & support our next steps
The main reasons ERP projects fail, or are perceived to have failed are;
Lack of an ERP strategy
Poor (ERP strategy) connection to organizational &/or business strategic plans
Failure to define, own, capture, measure & report success metrics
Lack of accountability for change management
Weak project governance structures
Disconnect between business & IT
A belief that once it's implemented that's it!
ERP solutions are also sometimes referred to as 'back office' systems.
Guided, detailed requirements gathering exercise.
Production of high-level Business Case.
Execution of a targeted RFP process.
Successful partner to deliver solution via a 2-phase approach.
Pre-implementation planning to translate requirements into system configuration specifications.
Result - definitive scope & cost based on real requirements.
Implementation of ERP modules based on Phase 1 pre-implementation work.
Embedded framework, roadmap & configuration required to support future growth.