NorthEast Regional Council The Institute of Management Accountants Saturday, January 28, 2012 Bryant University

A Journey into a Successful ERP Implementation

What’s the Patient’s Condition?  How is your Current ERP System performing? Interview Key Users What are the pain points? Is every day a challenge ○ Is your current system so impeded that a pencil and piece of worksheet paper make a good alternative ○ Has your system vendor stopped its support

What’s the Patient’s Condition? Is data easily retrieved when needed? How are the reports… do they meet today’s information needs? ○ Are reporting items not being met? ○ Being met with a great deal of pain ○ Being met but only with the merging of several systems output ○ Being met easily and without delay

What’s the Patient’s Condition?  What is Senior Management’s Opinion of the current systems? Is there “BUY IN” by Sr. Management toward the replacement of the current system? Is there commitment to support a long-term project with substantial investment requirements? Will they provide the needed support both financial and staff to make the project a go?

What’s the Patient’s Condition?  Quantify the findings with a study Third party help is a must (IBM, PwC, etc…) The results will surprise you Share the results with management  Commit to a Project Give the project its own identity Give it a presence at the office/campus/plant Share the news throughout the organization

A Journey into a Successful ERP Implementation

To Buy or To Build?  In most cases it’s not even a question.  Interviewing the Developers Can you provide a solution? How long to get to production? Can you provide a long-term solution? What will it cost us? Are there alternatives?

So you’ve decided to buy!  Interviewing the players General Sessions by Team ○ Show me where it hurts ○ Create an inventory of current system problems and questions  It’s RFP Time Who do you recommend that we contact Who can most readily meet or needs in a system implementation?

So you’ve decided to buy!  Parading the Vendors Open meetings with lots of players Video record the presentations for later use No question is a bad question See the demos, ask how the demo fits into your world. Will their system meet our needs? Watch out for vendor hype – Remember you are talking with the sales and marketing staff

So you’ve decided to buy!  Review the meeting data  Score the vendors  Get Sr. Management Input  Select the 1 st and 2 nd place winners  Negotiate the deal

You now own an ERP System…  What comes next? Find a reputable implementation partner. ○ Interview consultants with prior experience ○ Build a team of system specialist Build your internal team of players ○ Seek the best your company can offer ○ Get the experienced staff on the team ○ Exploit the knowledge base in house first ○ Go outside only after all quality internal candidates have been considered. ○ Know what you are buying ○ Offer Incentives to encourage staff to succeed

BLUEPRINTS Process Design Definition

Blueprints for the future

 Basic Needs What does the system provide What are the needs of the system How does the system meet the needs  Interview current staff Talk about the pain points Specific solutions to meet the user needs

Blueprints for the future  Formulate and document Write a narrative of what needs to occur Assign roles to specific functions Draw a process flow Indicate intervals that are supported by the system already Indicate where development will be required

Blueprints for the future Retirement of an Asset (Moveable Equipment) Step #Department/RoleDescription of Process Step 1Department SubmitterCompletes an on-line asset retirement form. 2Property AccountantThe Property Accountant reviews the retirement form to determine if it is completed correctly. 2aProperty AccountantIf the form is completed correctly, the Property Accountant performs a retirement transaction in the system. 2bProperty AccountantIf the form is not correctly completed, it is returned to the Department Submitter at step #1. 3Property AccountantRuns standard report to validate that the asset has been successfully retired.

Blueprints for the future

Process Design Definition  What is it?  How does the PDD support the process?  Share the outcome with Users of data – Applications of Process Management – Discuss what is needed Leadership – Share what will happen  Live presentation and seek acceptance

Process Design Definition  What areas will require development System Enhancements System Modifications  Customized Reporting Needs Sources of information ○ Query tools ○ Business Warehouse data resources Needs of information users  Copyright the data gathered

Configuration Design Document REALIZATION

Realization  Configuration Provide the necessary framework Establish key processes Establish the rules Document, Document, Document  Most lengthy phase of the install Develop processes Refine approaches

Where are the black holes?  Testing, Testing, Testing Unit testing by developers and SME’s Quality Assurance Testing with end users viewing the process QA-2 – Users at the keyboard UAT – User Acceptance Testing

ROADMAP FOR USERS Business Process Profile

Roadmap for Users  Detailed step by step instructions Document every transaction Tips and Tricks How to pictures COification of the trxns.  Value of BPP At the desk resource Step by Step

Educate the Users  Training the Users Work Instructions  Live Classes Hands on computer labs  OJT

GO LIVE!  Two of the scariest words in the Users vocabulary.  Project Management Helpdesk One on One Support Quit your bitching – you are not a victim! The old system is gone – Deal with it!

Post Go Live Support  Develop Reporting  Addressed Specialized Needs  Support Packs and Beyond

THANK YOU