ERM Systems Ton Klappe Jeroen Panken Deloitte Consulting

Agenda ERM –What is ERM, why ERM? –ERM functional areas and evolution ERM Implementation –Best-of-breed or best-of-suite (one vendor or multiple vendors) –Total cost of ownership –Implementation team and approach CRM Package configuration ̶ Siebel CRM ̶ Package configuration

What is ERM? Enterprise Resource Management (ERM) can be defined as everything related to: Production Process Human Resources Materials Products and Services SuppliersCustomers Production Resource Supply Chain Management Customer Relationship Management Materials & Production Management HRM Warehouse & Distribution Management Financial Management Physical Flow Money Flow

Why ERM? 1. Supports process integration and exchange of information with suppliers and customers: 2. ERM also provides consistent information to all departments in an organization: Purchasing Warehouse Sales Transport Finance Production HRM Planning ERM system Suppliers ERM system Customer

Improves logistical and financial control through integrated functionality: 4. Cost efficiency through stock reduction and process efficiency improvements SALES AND DISTRIBUTION MANAGEMENT MATERIALS MANAGEMENTPRODUCTION MANAGEMENT Detail Production Planning Master Production Planning Production Control Purcha- sing Goods Receipt Distribution Customer Sales Capacity planning Sales Forecast Supplier Why ERM? (2)

ERM functional areas ERM originates from automated financial administrations (e.g. general ledger) and from production planning (MRP), and expanded with other financial modules, MRP II, sales control, distribution control, purchasing control, production resource management and HRM: MRP II MRP Finance G/L A/PA/R F/AOv. P/C Purchasing Materials Mgnt Production Resource Mgnt Sales Distribution HRM

ERM functional areas (2) E-Procure ment ERM functionality is further expanded on areas such as CRM, e-Procurement, PRM, SCM and ERM: MRP II MRP Finance G/L A/PA/R F/AOv. P/C Procure- ment Materials Mgnt Production Resource Mgnt Sales Distribution Customer Relationship Mgnt Supply Chain Mgnt HRM Employee Relationship Mgnt Partner Relationship Mgnt

ERM functional areas (3) Typical ERM functionality: Materials Management includes: –Suppliers (contract) management –Purchasing –Management of (raw) materials and components supplies and warehousing –Goods receipts and quality management Production Management includes: –Master production planning –Materials requirements planning (MRP I) –Production capacity planning (MRP II) –Production (quality) control Production Resource Management includes: –Production resource administration –Preventive maintenance planning & control –Projects planning & control

ERM functional areas (4) Typical ERM functionality (continued): Human Resource Management includes: –Staff administration –Staff career planning –Organization management –Payroll –Time registration Warehouse and Distribution Management includes: –Sales forecasting –Order processing –Products stock planning & control –Warehouse management & order picking –Shipping

ERM functional areas (5) Typical ERM functionality (continued): Financial Management includes: –General ledger –Accounts payables –Accounts receivables –Fixed assetts –Treasury & cash management –Project cost management –Controlling Support functionality includes: –Business data warehouse –Query and reporting tools –Business process workflow tools –Mobile solutions (e.g. mobile sales) –other

ERM functional areas (6) Typical ERM functionality (continued): Customer Relationship Management includes: –Marketing support (campaign management, inbound marketing) –Sales support (opportunity management, salesforce automation, telesales, sales campaign management, product configuration, field sales support, web sales, sales force compensation management, market intelligence, quote generation, product information) –Customer service support (contact management, scripting/call center support, field service dispatch, services billing, service request handling, help desk, bulletin boards, web contact support (call me, web collaboration) Partner Relationship Management includes: –Cooperative lead generation and “contact to contract” development –Partner sales compensation management

ERM functional areas (7) Typical ERM functionality (continued): Supply Chain Management (focus on direct materials and services) includes: –Supply chain planning (SCP: demand planning, replenishment planning, constraint based manufacturing planning, resource optimization, capable-to-promise, configure- to-order, distribution planning, advanced planning & scheduling - APS) –Supply chain execution (SCE): contract management, catalogue management, e- exchange markets management, delivery time control, financial settlement –Transportation and warehousing management E-Procurement (focus on supporting goods and services) includes: –Internet requisition –Requisition approvals and workflow –Internal and marketplace catalogue management –Purchase order procurement

ERM process oriëntation Processes and data flow between the various ERM modules: (e.g. Opportunity to Order)

ERM processes extend beyond the borders of the company: Company Manufact. LogisticsMarketingDistributionSales Sub- contractor Raw Materials Supplier Components Supplier RetailerCustomer Logistics Partner Collaborative (closed or open) e-Market One-to-one relationship One-to-many / many-to-one relationships ERM process oriëntation (2)

ERM –What is ERM, why ERM? –ERM functional areas and evolution ERM Implementation –Best-of-breed or best-of-suite (one vendor or multiple vendors) –Total cost of ownership (TCO) –Implementation team and approach CRM and package configuration ̶ Siebel CRM ̶ Package configuration

Best-of-breed or best-of-suite

Total cost of ownership (TCO) Number of users TCO per user (5 years) High complexity Avg. complexity Low complexity High complexity: Scope: 3 or more processes High configuration (bespoke adaptions) > 70 screens > 7 complex integrations Average complexity: Scope: 2 processes Average configuration screens complex integrations Low complexity: Scope: 1 process Low configuration < 30 screens 2 or less complex integrations TCO strongly depends on the complexity (functional scope, level of modification and integrations), e.g.:

Implementation team and approach A low to medium complexity ERM implementation (1-2 processes, approximately 30 screens/reports and 1-2 integrations) typically requires approximately 3 months and requires an implementation team of approximately 3 consultants: - 1 PM (0,5 FTE) - 1 business and change management consultant (0,5 FTE) - 2 process & application consultants - 1 data – and TI integration consultant (0,5 FTE) Most effort is taken by: - Requirements specification - Business process redesign and package configuration - Data integration design and development Project phases typically include: Req’s definition Design Construc- tion Implemen- tation Scoping & planning

Requirements Definition and Design

ERM –What is ERM, why ERM? –ERM functional areas and evolution ERM Implementation –Best-of-breed or best-of-suite (one vendor or multiple vendors) –Total cost of ownership (TCO) –Implementation team and approach CRM and package configuration ̶ Siebel CRM ̶ Package configuration

Siebel CRM -Siebel CRM background -Siebel Call Center 8.0 movieSiebel Call Center 8.0 movie -Siebel Demo – Out of the Box

Background Siebel CRM

Package Configuration -Siebel Architecture -Siebel Object Types and Relationships -Siebel Tools Demo

Siebel Architecture

Siebel Object Types and Relationships

Siebel Tools Demo

Siebel Demo after configuration Current application at a large Belgium Bank: -First release: -Agenda and Activity Management -Employee -Customer -Resource Planning -Second Release: -Campaign Management -Lead and Opportunity Management -Interaction Management -Contact Preferences -Customer Dashboard

Copyright ©2007 by Deloitte Touche Tohmatsu. All rights reserved. With about 6,000 employees, and offices throughout the Netherlands, Deloitte is the leading organization in the field of Audit, Tax, Consulting and Financial Advisory. Deloitte Netherlands is an independent member firm of Deloitte Touche Tohmatsu, with 135,000 people and offices in 140 countries.