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1 The good, bad and ugly of successful implementations of SAP Two hypotheses are proposed (& do these differ for an upgrade ?) Annabel Carle Communications.

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Presentation on theme: "1 The good, bad and ugly of successful implementations of SAP Two hypotheses are proposed (& do these differ for an upgrade ?) Annabel Carle Communications."— Presentation transcript:

1 1 The good, bad and ugly of successful implementations of SAP Two hypotheses are proposed (& do these differ for an upgrade ?) Annabel Carle Communications Manager for Corporate Finance Division & Integrated Administrative Systems Note: Please use Powerpoint’s notes facilities (view>notes pages) to view the full content of this workshop

2 2 What will be covered today Background to Monash’s implementation – Facts & Figures –Monash change management and training Perceptions of implementation success across higher education - 2 hypotheses How do these differ for an upgrade? Note: Please use Powerpoint’s notes facilities (view>notes pages) to view the full content of this workshop

3 3 Monash implementation facts and figures In 2000 Monash –had students, 5205 staff –SAP R/3 4.0b was implemented at its 6 Australian major campuses and a number of off campus hospital sites –We trained 1300 users by ‘go live’ 1 July 1999

4 4 Executive Steering Committee Audit & Risk Management Monash SAP Consultant Quality Assurance Manager Project Director Steering Committee Project Assistant Assistant to Director Project Manager Exec. Project Consultant Finance Team Leader & Change Manager HR Team Leader & Change Manager Student Team Leader & Change Manager Client Liaison Manager IT Team Leader Finance Team HR/ Payroll Team Students Team Training and Documentation Technical Support Reference Group - Key Users and Site Representatives

5 5 The Printer’s Motto Pick any two

6 6 The ASAP methodology

7 7 What did Monash Implement? In July 1999 Fi, Co, FM, HR, MM The modules are fully integrated and share a common Chart of Accounts

8 8 Monash’s SAP Change management: What were the basics? Process standardisation across the University Client Liaison and Change managers appointed at commencement of project ASAP methodology (modified to suit!) - Change and training strategies and project plans developed before anything else! Getting involvement & ownership of end users Development of in-house training and documentation Original goal was to employ Monash staff as training & documentation staff to work closely with SAP consultants

9 9 Monash’s SAP Change management: What were the basics? Communicate ! –“Constant communication battle. You communicate, then you train, then you communicate some more (Hammer 1988) –“Communication is via words AND deeds backing up the words…” (Kotter 1995) Be flexible, listen to users, the project process teams, and be honest! –No maps for change - what’s right for one implementation is not right for the next Manage Expectations!

10 10 Perceptions of implementation success across higher education - 2 hypotheses

11 11 Hypotheses 1. The successful implementation of an ES system at a higher education institution, such as Monash University, is due to a number of key factors and cannot be attributed to any single factor 2. To release the full potential of SAP, higher education institutions have to continue to make further investment in the product.

12 12 We tend to seek easy, single-factor explanations of success. For most important things, though, success actually requires avoiding many separate possible causes of failure.

13 13 What factors are key to a successful implementation? Four major themes are identified in the literature as fundamental to successful implementation of enterprise resource planning. 1. To obtaining sponsorship from key stakeholders, this concern is common to technology project management in general. 2. aligning project design with the organizations business objectives, is a consequence of the design of ERP applications around business processes.

14 14 What factors are key to a successful implementation? 3. training personnel on organizational, and not just technical, issues is intimately tied to the notion of best practices. 4. evaluation issues stem from the difficulties of demonstrating the measurable business value of information technology.

15 15 Factors to identify as fundamental to a project’s success Scoping SAP in a University Environment: Lee Schlenker 1999

16 16 Are these factors relevant? From your own experiences –Would you amend any of these factors –Would you add any others? Is the first hypothesis confirmed?

17 17 Hypothesis 2 To release the full potential of SAP, higher education institutions have to continue to make further investment in the product. How/why did Monash reach this hypothesis? Is it supported by the literature?

18 18 How was the hypothesis reached? ….. we surveyed SAP Users. The key goals of the survey were: Are there any business benefits/advantages yet? When do users believe the benefits will be met? How often is SAP being used? Are staff confident in use of the system? Are the available reports what staff need? Have there been any process time and cost savings yet? Is the best use been made of the system? What SAP developments do staff want next?

19 19 How was the hypothesis reached? …. Who did we survey?

20 20 How was the hypothesis reached?.. When will the benefits of SAP be met? Monash’s May 2000 Survey

21 21 When will the benefits of SAP be met? Benchmarking Partners 1998 Survey

22 22 How many hours per week are you using SAP? Results from Monash 2000 Survey

23 23 When do frequent and infrequent users believe improved levels of service will be be met? Results from Monash May 2000 Survey

24 24 Areas of Knowledge Management (ROI)

25 25 What are the greatest business advantages to be gained eventually from the introduction of SAP? Results from Monash’s May 2000 Survey

26 26 Why did your company invest in an enterprise solution? Results from CEO Survey Mission Critical: Realizing the Promise of Enterprise Systems - Thomas Davenport

27 27 Expected Capabilities Upon Completion of ERP Program Results from Benchmarking Partners Survey ERP’s Second Wave: Maximising the Value of ERP-Enabled Processes - Deloitte Consulting

28 28 What is needed for you to make the best use of SAP? Results from Monash May 2000 Survey

29 29 How the time and cost savings for the electronic availability of reports from SAP compares to that from the legacy systems

30 30 Comparison of SAP’s Management Reporting Information with that from the Legacy systems

31 31 What do we still need to get it done better? –On going time, energy, resources and commitment/agreement from senior management –need long term, on going client liaison/change management –agreement that we need to develop best practices now that the base models are in –need to change the ways managers and their staff view their work

32 32 Life begins after implementation Make sure you’ve planned and are resourced for the 12 months post implementation and beyond, that is if you want to get a return on your investment

33 33 Hypothesis 2 How has it been in your university? Is the hypothesis “To release the full potential of SAP, Monash University (or any other higher education institution) will have to continue to make further investment in the product.” confirmed?

34 34 What is the SAP Upgrade bringing and what can be planned after Essentially a technical upgrade of SAP from 4.0b to 4.6 c ‘go live’ at this stage is planned for April In addition a few SAP fixes will be applied Profit Centre Accounting being configured ready for introduction of Strategic Cost Management in Faculties in Jan 2003

35 35 Reduction of Infrequent users As a result of the May 2000 survey we have promoted strongly to the senior staff the need to critically look at the numbers of SAP users Are infrequent users a good use of faculty/division time & resources? –As a result the numbers of users will be reduced by 200 at the time of the Upgrade and the numbers of roles to which staff have access, will have been streamlined

36 36 What is the SAP Upgrade bringing and what can be planned after CBT training developed for: –Introduction & Navigation –Approvals –Good receipting –General ledger (General Journals/IDN) –Reporting principles –HR Display access

37 37 What is the SAP Upgrade bringing and what can be planned after On-line help has been redeveloped. –On-line and SAP can be viewed side by side –Total review of all content to meet end user requests for improvement

38 38 What are the other key issues being encountered? Reporting is still an issue for Senior Staff –Need easy to access and configure reports –with professional layout it is hoped it will be addressed post upgrade with a suite of web based reports

39 39 What are the key issues for the Upgrade to 4.6? What can Monash learn from those of you who have already upgraded to 4.6? –what went well? –what did not?

40 40 Where to next? Post Upgrade, there is a budget for Business Development. There are a number of competing requests which include –E-procurement and expansion of E-Sales –Archiving –Document Imaging –Decentralisation of HR leave and appointments –Introduction of ESS (or expansion of E-services)

41 41 Summary: How can we assess where we are going?

42 42 The Four “Ares” AlignmentBenefits Capability/EfficiencyIntegration The Information Paradox: John Thorp Are we doing the right things? Are we doing them the right way? Are we getting the benefits? Are we getting them done well?

43 43 Questions?

44 44 Bibliography


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