Presentation on theme: "Concurrent Session CON6429"— Presentation transcript:
1 Concurrent Session CON6429 Best practices for An Oracle E-Business Suite Global Implementation ProjectConcurrent Session CON6429Gurjeet KhanujaIT Director, Enterprise Applications Logitech Inc.29th September, 2014
2 About Logitech Me Project Manager, R12 Re-implementation project Global leader in consumer electronics$2.32 billion in annual revenue, doing business in 100+ countries3500 professional employees plus factory employeesManufacturing in China & Malaysia, distribution centers across the globeMeGurjeet Khanuja: IT Director, Enterprise ApplicationsProject Manager, R12 Re-implementation projectMS & BS in Computer ScienceOver 23 years of experienceWorking with Logitech for past 14 years:Three ERP implementations (R11.0.1, R11i, R12.2.3), technical upgrade (R11.0.3), and several other biz process improvement projectsManaged several IT teams:Oracle Application functional and technical, Enterprise Data Warehouse/BI team, CRM, Web Development teamsCloud Computing – Salesforce.com, Force.com, Informatica cloud| Networking:
3 DisclaimerI am an employee of Logitech Inc. The statements or opinions expressed are my own and do not necessarily represent those of Logitech.
4 ERP Projects According to market research data, ERP projects – 55 to 75% does not meet its objective31% cancelled before completion53% cost 189% more than original estimatesCause of failureCross-functional agreement on enterprise wide business processesLack of visible, vocal, and meaningful executive sponsorshipLack of formal and disciplined project managementProject team turn-over of key staffInability to identify and mitigate risks or remedy incidents that ultimately escalateTroubled user adoptionToo much software customizationProject viewed as “IT” projectInadequate data cleansingSource: Gartner, Analyst Firm and Standish Group, Research Firm
5 Logitech’s ERP Project (R12.2.3) It’s a Success but we’re not done yet!One track, out of 6 is not readyProject is under budget66% reduction in customizationGlobal implementationFinance, Supply Chain, Manufacturing, and Sales & Marketing40 Oracle modules, including 8 new modulesRetrofit Enterprise Data Warehouse, reports and BI applicationsSimplifiedOrg Structure (OUs, SOB, Inventory Orgs)PricingIntercompany etcStandardize on OracleRemove Trade Mgmt module build on Force.comReplace Ariba with Oracle Sourcing
6 We faced challenges Executives misalignment Ineffective implementation approachOracle Business Accelerator (OBA)Cost over-runLost key resourcesMuch higher customization than assumptionMissing detailed project plan
8 While waiting for R12 project approval … Upgrade InfrastructureImplement Oracle Exadata, Exalytic, ExalogicMoved from AIX to Linux platformData center consolidationUpgrade various up/down-stream systems that interact with Oracle ERPStudy various other application modules that could be a good fit for Logitech bizOracle documentation, white papersProduct demonstration and discussion with product managers at Oracle and on-sitePrepared Project Infrastructure:Oracle Content Management: Document Management System:iGrafx: Process Flows DocumentationJive: Business Social Media for Project related documentation & communicationHP-Quality Center : Defect Tracking System, documenting test scenario/casesHP-ITG: Code migrationOUM (AIM) Templates (BR100, MD50, MD70 etc)MS-Office, Project
9 Project Objectives Oracle R12 Standardize using R12 mega processes - one version of the truth for reporting and analyticsOracle R12SimplifyGlobalizeStandardizeGlobal integration to promote organization alignment andenterprise efficiencyReduce CustomizationReduce customization with a focus on market differentiators in the core areasSimplify with streamlined processesOptimize for core areas of differentiation. Drive for competitive cost and performance in all other areas
10 Business Intelligence ScopeMega ProcessesForecast to PlanBuild to StockSource to SettleOrder to CashMarket to CustomerFinance to ManageDevelopment(in scope)Oracle(RICEW)Data ConversionLess than 10% customization of current levelBusiness IntelligenceRetrofit BI ReportsRetrofit BI ApplicationsRetrofit BI DashboardsIntegrationEdge applications (OTM, PeopleSoft etc)Third-party systemsTrading PartnersOut of ScopeLifesize processesPLCM
12 Cost System Integrator Cost Functional ConsultantsProject ManagementData Conversion & Data Cleansing Cost (Opex)Development CostOracle Development (RICEW)BI/EDW DevelopmentIntegrationDBA/Tuning ExpertProfessional FeesIncremental Employee CostBusiness/IT resources dedicated to project (a backup resource is hired to do their regular job)New Software/Hardware CostInternal Resource Cost (rough estimate)
14 Project Governance Approach Project Governance StructureSelected Strategic DecisionsExecutive SponsorsLogitechProject PlanIssues / Actions LogKey Business Decisions LogChange Control/Scope ManagementRisk LogStatus Reports5%Steering CommitteeSteering Committee Chair: Logitech Executive SponsorLogitech Executives, IBMKey Business Decisions15%Project GovernanceProject Governance Leaders: Logitech Project Executive Director, Logitech Project Manager, IBM Project ManagerCross-Functional Decisions80%Mega Process Business LeadsTesting LeadTechnical LeadOrganization Change Management LeadDetailed Team Decisions
15 Cascading Milestone & Workplans Workplan & Milestone PlanningCascading Milestone & WorkplansPMOMASTER SCHEDULEProgramTeamMilestone 1Milestone 2Milestone 3Milestone 4AlignmentWORKPLANSActivity 1Activity 2Activity 3Activity 4WORKPLANSActivity 1Activity 2Activity 3Activity 4Mega Process TeamsWORKPLANSActivity 1Activity 2Activity 3Activity 4Mega Process Teams will maintain detailed Workplans that align with the schedule requirements of the overall Project Plan. The overall Project Plan does not contain the high level of detail contained in the Mega Process Teams’ Workplans.
16 Oracle Unified Method (OUM) OUM is rapid, broadly adaptive, and business-focusedIt uses project phases and processes to include quality and control checkpoints and allow coordination of project activities throughout the projectOUM Phases:Inception – Global design phaseElaboration – Detailed design, create prototypes, and baseline architectureConstruction – Functionality development and System integration testingTransition – User acceptance testing, training, and launchProduction – Operate on new system and support users
18 Test Cycles and Objectives CRP1Conference Room Pilot“Out of the box” process flowsDemonstrate new modules, fit/gap analysisCRP2End to end biz processes on a completely configured systemValidate customization requirements (no customization)SIT1System Integration TestTest 70% Customization and master date conversionEnd to end biz process flows with developed objectsSIT2100% customization and data conversionTest end to end biz process flowsUATUser Acceptance TestValidate processes and system readiness by SMEs and biz team and “sign-off”1818
19 Project Cadence Weekly meetings Monthly/Bi-weekly meetings Tuesday: IT & SIThursday: Team LeadsMonthly/Bi-weekly meetingsSteering CommitteeDaily meetingsDuring CRPs, SITs, UAT daily wrap-up callsChange Management meetings as needed
20 Challenges early on !! 6 weeks behind schedule Executive misaligned Misunderstood OBA potential, resulted delay in CRP1 instanceReduced CRP1 scope from 12 OUs configuration to 7 OUsDelayed starting first CRPExecutive misalignedProject objectives: total transformation vs tech upgradeCustomization vs standardization discussions were contentiousNot clear when to allow customizationProjected cost 35% higher than original estimates, in first 5 months
21 Actions taken … Executive alignment workshop (4 weeks) A small group, led by IBM, conducted Executive Alignment workshopSeveral key decisions madeExecutive Mega Process ownership establishedSteering Committee reformedStrategies where customization is permissibleControlled projected cost over run –Took over project management and organization change management responsibilitiesUsed internal IT resources where ever possibleAs we gain control on IT tasks, we roll-off external consultantsAdjust the planRe-assessed project tasksDetailed planning for the Construction PhaseAdded 4 weeks to the scheduleTeam alignment, motivation, mentoring, put forward challenging tasks with positive reinforcement!
22 Our Success Factors Strong executive sponsorship & support Monthly, Bi-weekly steering committee meetingsUpdate Board members on quarterly basisMonthly, Quarterly blogs and update in “All Employees” meeting on quarterly basisA dedicated, smart, and committed team !!Effective organizational change managementThorough stakeholder analysisEnd-users training plan and training material preparationDocument and communicate project progress, what’s changingRegular updates to Business Change LeadsEffective project managementCatch warning signals early on and proactively taking actionsDetailed planning and effective monitoring & controlsClearly defined milestones and deliverablesWell defined roles & responsibilitiesProcesses & infrastructure – templates, change management, risk management, issues & decision logs, defect tracking, collaboration tools etc
24 Prepare for ERP Project Pain points, hybrid solutions, complex processesData QualityIntegration mapup/down-stream systems, customers, vendors, partners, third partyStakeholder analysisInventory of customization (RICEW)Implementation strategyUpgrade, Re-implementation, HybridStudy and research new modulesScope outlineEstimate level of efforts involvedExit strategyProject infrastructureTools, TechnologiesTemplates
25 Implementation vs Upgrade Source: Deloitte Consulting
26 Tips & Techniques Clearly define project objectives and scope Facts and assumptionsCommunication planDetailed WBS, space milestones evenlyMonitor and controlData cleansing, cut-over planningEffective organizational change managementCurrent system, customization, processes, and pain pointsTeam’s capabilities and training needs
27 Tips & Techniques RFP Responses Screen SI consultants Its usually long, read it carefullyVerify scope and deliverablesCheck resource estimatesFees, rate chart … negotiate!Screen SI consultantsTeam structure, Roles & Responsibilities, RACISI vs IT work responsibilitiesWork as a “team”Plan contingencyExit plan for legacy system
28 Red Flags Look for early warning signals and take appropriate action: No milestonesMissing periodic checkpointsMissed milestone and deadlinesShifting priorities and specificationsInfrequent or weak executive sponsorshipStaff turnoverPoor incident management and spotty reporting
29 Critical Factors for Successful Change The most successful companies have realized that behavioral and cultural change are crucial to project success and are considerably tougher to address than the so-called “hard” factors, such as structure, performance measures and incentives – the soft stuff is the hard stuff.Real change depends on transforming attitudes throughout the organization and its business partners. Above all, people change business. Therefore, practitioners place a key responsibility for successful change right at top management’s door.Soft FactorsHard FactorsTop management sponsorshipEmployee involvementHonest and timely communicationCorporate culture that motivates and promotes changeChange agents (pioneers of change)92%72%70%65%55%Change supported by cultureEfficient training programsAdjustment of performance measuresEfficient organization structureMonetary and non-monetary incentives48%38%36%33%19%Factors for successful changeSource: IBM Global Making Change Work Study, 2008
30 Key Success FactorsOrganization understand the reasons and strategy behind the moveExecutive sponsorship and supportTheir job is to remove barriers and roadblocksDevelop project structure and clearly define roles and responsibilitiesEffective Organizational Change ManagementIdentify key changes to system processes and organizational structureBusiness Change Leads to communicate to end-users (formal & informal) about the upcoming changesAssess training needs, train end-users, provide refresher training as neededEffective post go-live supportDecommission legacy system, reiterate benefits of new systemManage expectations and identify area of continuous improvement
33 AbstractOracle E-Business Suite ERP implementation at Logitech began with four clearly defined objectives: process simplification, standardization, globalization, and customization reduction.It involved global implementation of Oracle Financials, Oracle Supply Chain solutions, Oracle Manufacturing, and more—plus several new Oracle modules.Logitech standardized on Oracle by replacing hybrid systems such as Ariba, Sabrix, Force.com, and several custom solutions.It simplified the org structure, pricing, and intercompany and global banking processes and cut customization to one third.This session discusses the strategy, implementation method, and project management and offers advice, with practical tips and lesson learned
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