Hosted by SAP End User Competency They Drive the Business Processes That Drive Your Business Performance

Hosted by Research Sources META Group “TCO of ERP” META Group/RWD Technologies: End User Competency META Group “The State of ERP Services ” Various other META Group research sources

Hosted by SAP Disappointment While the beat of the ROI drum around ERP is incessant, most firms with ERP investments have their heads turned in wrong direction. Integration Extended applications (CRM, SCM, et al) ROI-related anything

Hosted by ERP Clients Look into the Mirror Perceived Responsibility for Problems with ERP Implementation Number Answering Our Own Organization Software Vendor Systems IntegratorDon't Know There was no quantifiable measurement of business benefits derived from implementation 5969%12%10%8% We had insufficient knowledge transfer5634%20%36%11% After go-live, we broke up the implementation team and left IT to support the installation 5582%9%0%9% We shortchanged end user training due to time or budget limitations 5178%6%10%6% We over-customized the software rather than adopting inherent business practices 4774%4%21%0% Little or no planning was given to post- implementation support 4055%5%33%8% We under funded the project and finsihed late and over budget 3174%13%10%3% We failed to manage scope3073%0%17%10% We have too many versions or instances to manage and are not getting integration as planned 2152%19% 10% Q36.Who do you believe is most responsible for the problems you experienced with your base ERP

Hosted by Audience Poll How many of you are in firms that have had SAP for more than 2 years? How many of you have had any substantial form of repeat or continuous SAP end user training? How many rely on user-trains-the user?

Hosted by End User Attrition Source: U.S. Department of Labor

Hosted by End User Scenario Go Live More Change to Business Process /Attrition Change to Business Process Initial Training Expert Functional Version Upgrade Degraded Year 0 Year 1 Year 2

Hosted by Training Plans Presume Short-term Utilization Training budgets are based upon pre-ERP cycles Training budgets seldom include repeat or continuous training Day 1: The End of the Beginning 1-3 Years Planning View: the ERP wedding Years Client Reality: the ERP marriage Investment scope

Hosted by -20%-10%0%/Midpoint10%20% Executive Reporting End User Competency Functional Integration Application Mtc Costs Financial Integration Business/IT Alignment Architecture Other Respondents could choose multiple pain-points. The average % of pain points cited was 38% which represents the midpoint. This graphic shows the relative response variance from midpoint. Query of 124 firms with ERP installed ERP Issues

Hosted by Source: META Group “TCO of ERP”, 2003 Dedication to User Training

Hosted by Optimal ERP End User Competency How competent are your ERP users? Do they take full advantage of ERP functionality? Did they receive adequate initial training? Do they receive continuous training? Do they adequately drive the business processes?

Hosted by 76% of Firms Polled Face User Competency Challenges Our end users are struggling to make use of the software 11% Our end users fully understand the software and are able to gain full benefit of its functionality. Our end users have a sufficient understanding of the software but are not gaining full benefit of its functionality Our end users have the ability to perform their jobs more effectively due to competency in using the application and knowledge of how it supports our processes. 13% 64% 12% How competent are your end users? Highly Competent Competent Sub-Standard Failing

Hosted by Refresher and periodic re-training lead directly to competency gains All end users receive refresher training on a regular basis Relevant end users receive training whenever there are major system changes or upgrades 11.1 % Highly Competent + Competent Sub-standard + Failing 56% 37 % 6 % No training provided 13% 22 % 65 %

Hosted by SAP Training Resource SAP Dedicated third-party SAP trainers Super users SI’s LMS software Simulation software

Hosted by What practices are applied by the 24% of firms with competent end users? 83% (During implementation) instituted a comprehensive training plan as opposed to 22% of the firms with sub-standard competence 81% employed trainer-trains-the- trainer technique as opposed to 65% of the other firms 90% combine internal staff with Third Party or Vendor-supplied training

Hosted by Worst practices One-time end user training Ongoing user trains the user No outside training resource No competency measurement No simulation

Hosted by For post-implementation training support, successful firms… ERP vendor-supplied Third-party ERP training Third-party systems integrator Independent consultant Internal staff Highly Competent + Competent 20% 10% 15% 5% 90% Sub-standard + Failing 17% 13% 5% 24% 78% 45% 35% engage dedicated outside trainers, not independent consultants Instructor Mix

Hosted by The ROI of End User Competency End user “functions” drive the business processes that drive business performance Alice in Wonderland Order Fulfillment Process Order Fulfillment Process Sample Business Performance KPI’s  Return on sales  Return on assets  Net sales per employee  Ratio of Assets/Liabilities Sample Business Performance KPI’s  Return on sales  Return on assets  Net sales per employee  Ratio of Assets/Liabilities Procurement Process Procurement Process Production Process Production Process Sample Major Business Processes Business Process Drivers Key Performance Indicators Profit & Loss ERP User Competency

Hosted by META Group Advisory Develop a continuous training program Mix qualified outside training resource with dedicated internal resource Monitor end user competency with an eye on business benefit Bottom Line: End users drive your business processes every bit as much as does the software

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Hosted by Question? Audience Response Hosted by