enterprise resource planning (erp) from a to z defined erp ‐enterprise resource planning...
TRANSCRIPT
Agenda• 9:00AM– 9:15AM IntroductionsandCourseOverview(Phil)
• 9:15AM– 9:30AM ERPDefined(Phil)
• 9:30AM– 10:30AM ERPProcurement(Terry)
• 10:30AM– 10:45AM Break
• 10:45AM– 11:15AM ERPProcurement(Terry)
• 11:15AM– 12:00PM ERPBusinessIssues(Terry)
• 12:00PM– 1:15PM Lunch
• 1:15PM– 1:45PM ERPBusinessIssues(Terry)
• 1:45PM– 3:30PM TechnicalIssuesandProcesses(Phil)
• 3:30PM– 4:00PM ERPProjectWrapUp(Phil)
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WhoAreWe?
PhilBertoliniDeputyCountyExecutive/CIO,OaklandCounty,Michigan
TerryHackelmanManagingPrincipal/Founder,NexLevelIT,Inc.
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WhyAreWeHere?
ImplementinganERPsystemisoneofthemostdifficultprojectstobecompletedbygovernment
InvestinginanERPcanbeadifficultandexpensivedecision
MostgovernmentstakeholdershavelittleornoexperienceinimplementingERPsystems
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AcronymsDefined
ERP‐ EnterpriseResourcePlanning Integratedpre‐definedapplicationthatfacilitatestheflowofinformationtomultiplefinancialandoperationalfunctions
Commonuserlookandfeelacrossallmodules COTS‐ Commercial‐off‐the‐shelf
Commerciallyavailablesoftwaredesignedforaspecificpurposethatcanbeusewithlittleornomodifications
Customerconfigurationsallowedwithindefinedparameters Common“code”sharedacrossmost,ifnotall,customers VendorsupportsongoingmaintenanceandR&D
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PotentialERPScope
Scopecanvarysignificantlydependinguponneeds
Corefunctionsarecriticalandprovidethefoundationforallothermodules
Shouldbeconsideredfromanenterpriseperspective
Evaluatetrade‐offs
Recognizedepartmentneeds
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©2015NexLevelInformationTechnology,Inc.Allrightsreserved
ERPBenefits Promotesasinglesourceoftruth– reducesdataduplication Encouragesintegratedbusinessprocessesacrosstheorganizationtocreateefficiencyanddataintegrity
Breaksdown“informationsilos”– encouragessharingofcommoninformation
Simplifiestrainingandpositionsorganizationforimprovedsuccessionplanning
Promotesincreasedvisibilityandtransparency– bothinternalandexternal Increasesdataprotectionthroughcentralizedsecuritypolicies Improveddisasterrecoveryandbusinesscontinuity Enablesimprovedreporting
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ERPSolutionTrends
Focusonextendingoraddingvaluethroughenhancementsorre‐procurements• Workflow• DocumentManagement• Integration• Dashboards• BusinessIntelligence
SingleERPvs.Best‐of‐Breed• Manykeepingfinance,payroll,andHRinasinglesystem• Allowingdepartmentstochoosethebestfit– thenintegrate
o LandManagement,UtilityBilling,WorkOrder/AssetManagement/CMMS,etc.
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ERPProcurementOverviewAneffectiveprocurementsetsthestageforasuccessfulimplementation!
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Precept#1‐ ERPProcurementsarerisky
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Proceedcarefully,becauseyouwilllivewithawrongdecisionforyears!
Precept#3– Bepreparedtomaketoughdecisions!
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IttakesthousandsofsmalldecisionstomaketheoneBIGdecision.
Precept#4– Obtaining“DecisionQualityInformation”isaprocess
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©2015NexLevelInformationTechnology,Inc.Allrightsreserved
QuestionsthatmustbeansweredtocompleteanERPprocurement
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Wheredoweneedtobe?
Wherearewenow? Howdowegetthere?
ProcurementFramework
Importanttorecognizeprocurementphases
Specificactivitiesassignedtoeach
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Implementation
Negotiation
Selection
RFP
Requirements
Initiation
Initiation
KeyActivities IdentifyProjectSponsor(projectleaderonstaff)
Developaprojectcharter– authorizingdocument
Formalizeaprojectmanagementplan Considerresourceavailability Beginchangemanagement
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Implementation
Negotiation
Selection
RFP
Requirements
Initiation
“If you don’t have time to do it right the first time, how do you have time to do it again”
Requirements
KeyActivities Getstaffinvolved
o Youneedtheirexpertise,itpromotesbuy‐in,andpreparesstaffforlong‐termsupportrequirements
Focuson“highpriority”and“unique”processes Clearlydefineintegrationandinterfacerequirements
Revisitprojectcharterscope– isitstillaccurate?
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Implementation
Negotiation
Selection
RFP
Requirements
Initiation
RFP
KeyActivities Ensureaccurateandcomplete
documentation Createawarenessinthevendor
community Developevaluationcriteria RecognizetheRFPprovidesthe
foundationforthefinalagreements
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Implementation
Negotiation
Selection
RFP
Requirements
Initiation
“Efficiency is doing things right; effectiveness is doing the right things.” - Peter Drucker
Selection
KeyActivities Scorevendorproposals(technical
requirements) Validatecompanystabilityandcommitmentto
market ExecuteProof‐of‐Capabilities(POC) Carefullyconsidertotalcostofownership
(TCO) Conductreferencechecksandon‐sitevisits Re‐visitProjectCharterandRisks
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Implementation
Negotiation
Selection
RFP
Requirements
Initiation
“Perfect is the enemy of good”
Negotiation
KeyActivities Bepreparedformultipleagreements Clearlydefine“acceptance”criteriaper
phase Insiston“holdback”basedon
acceptance Incorporatebyreferencepriorwork
(i.e.– RFPs;specifications)
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Implementation
Negotiation
Selection
RFP
Requirements
Initiation
“Follow effective action with quiet reflection. From the quiet reflection will come even more effective action”
– Peter Drucker
Implementation
TransitionActivities Formalizetransitionfromvendor“sales
team”to“implementationteam”– andensureongoingaccesstoreconcileissues
Re‐evaluaterisks,budget,resources,schedule– startimplementationwithaccurateprojectmanagementplan
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Implementation
Negotiation
Selection
RFP
Requirements
Initiation
“You’vegottobeverycarefulifyoudon'tknowwhereyou'regoing,becauseyoumightnotgetthere.”‐ YogiBerra,baseballcatcher
ProcurementTimeline
Thereisno“typical”timeline– thescheduleisdependentonstaffavailability,vendoractivity,organizationpriority,complexity,andotherfactors
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KeyProcurementThemes
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ExpectationManagement
Transparency
Momentum
Collaboration
ERPBusinessConsiderationsIttakesavillagetoimplementanERP!
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UnderstandingtheCapabilityGap
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Demand
High
Low
Technology Gap
©2015NexLevelInformationTechnology,Inc.Allrightsreserved
Technology
People
ProcessCapability Gap
ChallengesofImplementinganERPSystem
Planningandcoordination Scopemanagement Expectationmanagement Integration Processanddataknowledge
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PlanningChallenges
Projectteamcommitmentandtimelyavailability Definitionofrolesandresponsibilities Executivebuy‐inandcommitment Agreementonimplementationmethods
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ScopeChallenges
ConfirmProjectScope– Often!o UserRequirementsandNeedso IntegrationRequirementso DataConversionRequirementso StaffandBusinessProcessImpactso BudgetConstraints
ManagingProjectScopeo Constantcommunicationandconfirmation
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ExpectationChallenges
Minimizethe“vendor”or“conference”hypeo Ensurerealisticexpectations– atalllevelsoftheorganization
o Monitorexpectations
Changeimpactsmanylevelso Knowstaffandbusinessimpact
RiskManagemento Changeequatesto“risk”
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IntegrationChallenges
Businessapplicationintegrationso ERP,permitting,businesslicense,utilitybilling/CIS,
class/facilityreservation,cashier,etc.
Enterprisetechnologyintegrationso Documentmanagement,GIS,Intranet,
Internet,etc.
Externalentityinterfaceso Conversion
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ProcessandDataChallenges
Availabilityofsubjectmatterexperts Realisticunderstandingofdataquality Accurateunderstandingofbusinessprocessesandworkflows
Willingnesstoacceptchange
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EstablishtheReasonandEnlistSupport
Don’tassumethateveryoneunderstandswhyyouaredoingthisproject!
ERPprojectshaveanenterprise‐wideimpacto Executivesponsorshipisessentialo Benefitsmaynotbereadilyapparenttostaff‐ expectstaffresistanceifsponsorship,purpose,andbenefitsarenotunderstood
Strategieso Documentandcommunicate“whyarewedoingthisproject?”o Statebenefitsintermsstaffunderstands– “whatisinitforme?”o Communicateearlyandofteno Setandcommunicatescopeearly
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EmpowerStafftoMakeDecisions
Don’tassumethatstaffwillmaketimelydecisions!
Ittakesthousandsofsmalldecisionstomaketheone“big”decision
Decisionswillhavetobemadeonlessthanperfectinformation– resistparalysisbyanalysis
Establishenvironmentwherestaffisempoweredtomakedecisions…andmistakes
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RequirementsGatheringisaCollaborativeProcess
Don’tassumethatthemostexperiencedstaffknowtherequirementsandcanprovidethem!
Requirementsprovidethebasisforselectionofthebestfitsolution
Strategieso Takeadvantageofinvolvinglessseniorstaffo Considerinvolvingstaffthathaveexperienceoutsidetheagency
o Involvedepartmentmanagementandstaffo Useyournetwork– askothersoutsideoftheagency
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EnsureAdequateTechnologyFoundationExistsDon’tassumethatyourexistingtechnologyenvironmentispreparedtosupportallthenewERPsystemfunctionalitythatwillbeavailable!
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ExpectationManagementStartsattheBeginning
Don’tassumethatstaffandmanagementunderstandsthescope,orthatexpectationswillnotchangeduringthecourseoftheprocurementandimplementation!
Knowledgeisgainedthroughouttheprocess,butoftenstaffexpectationschange,aswell
Strategieso “Signoff”ontheprojectcharterandplanwhichclearlyarticulatesscopeo Implement“RiskManagementPlan”fromtheoutseto Holdregularlyscheduledleadershipandstaffmeetingstoreview;o Projectcharter,RiskManagementPlano Trackandreportscopechangestotheleadershipteam
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“Yougottobecarefulifyoudon'tknowwhereyou'regoing,becauseyoumightnotgetthere.”‐ YogiBerra,baseballcatcher(1925‐present)
CommunicateConstantly
Don’tassumethatallstaffwillrememberwhytheprojectwasinitiatedandisawareofwhatisgoingon!
Projecttransparencyiscriticaltothesuccess Strategies
o Formalizeacommunicationplanandsticktoit– evenifitisinformal Useemail,Intranet,meetings(departmentandleadership)
o Ageoldwisdomforcommunicating Tellyouraudiencewhatyou'regoingtotellthem.Tellthem.Thentellthemwhatyoutoldthem.
o Establishfeedbackmechanismstoensureunderstanding Surveys,informalmeetingsarevariouslevelsoftheorganization
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SuccessRequiresMaintainingMomentum
Don’tassumethatstaffwillremainengagedandenergizedthroughout– orthatnewstaffwillbeonboardwiththeproject
ERPProjectmustbeamongthetopprioritiesfromanenterpriseperspective
Delaysoftenresultinlossofmomentum– whichcanbedifficulttorecapture
Strategieso Don’tlet“perfect”getinthewayofgoodo Don’tletdifficultdecisionsdelayprogresso Resistnaturaltemptationtodelaycriticalmilestoneso Celebratesuccessesearlyandoften– peopleneedstobeoccasionallyre‐energized
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StafftheProjectforSuccessDon’tassignstaffmemberstotheproject
forthewrongreasons
Tendencyistostaffprojectbasedonpositionandknowledge “Experience”shouldnotbetheonlyfactor Strategy
o Identifystaffwiththerightcharacteristics(i.e.abilitytoadapttochange,enthusiastic,persistence,resilience,teamplayer,energetic,abilitytodealwithstress
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Agency‐sideProjectManagementisnotOptional
Don’tassumethevendorwillprovideenoughprojectmanagementservicestoensuresuccess.
Vendorprojectmanagementisnecessary;however,understandthelimitationsandconstraints
Projectmanagementismorethanimplementingsoftware– includesOCM,riskmanagement,andissuemanagement
Strategieso Committodedicatedagency‐sidePMo SelectanexperiencedandempoweredPMo EnsurePMreports
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PlanandUseBackfill
Don’tassumethatjustbecauseyoubudgetedforstaffbackfill,itwillbedone
Backfillstrategiesaredifficulttoexecuteandoftentimesarenotused
Strategieso Includebackfillaspartoforiginalbusinesscaseandprojectbudgeto Beginexecutingbackfillstrategybeforeactualneedo Don’tallowstaffexcusesnottousebackfillo Consider“waterfall”approach
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PlanadequatetimetocreateChartofAccounts
Don’tassumethatthevendorwillhavealltheanswersforwhatyourchartofaccountswilllooklike.Whyisitimportant?
o Criticaltoensuretheabilitytoextractdatafromfinancialsystemo Criticalformanagementoffinancialdataandaccountingforexpensesassociatedwithspecificactivities(ex: projects;specialevents;capitalexpenses;departmentprograms);organization‐wideexpensetypes(iecityattorneyexpensescitywideacrossalldepts)
Whyisitsodifficult?o Organizationalresistancetochangeo Mappinghistoricalexpensesbetweenoldandnewchartofaccounts
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PlanadequatetimetocreateChartofAccounts
Continued… Stepstore‐design?
o Determinewhattheorganizationneedsintermsofreportingoutandexpensetracking‐ gapsincurrentdesign,i.e.wherethedesigndoesnotsupporttheorganization’sfinancial/operationalmanagementobjectives
o Gatherinputfromtheorganizationaboutwhattheyneedoutofthefinancialdata
o Layoutthedesigninalogicalmannersoenduserscanadapttoandrecognizethepatternandmoreeasilyidentifyaccountstringstobeused
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ERPTechnicalIssuesandProcesses
Presented by, Phil Bertolini, Deputy County Executive & CIOOakland County, MI
March 2016
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WhereDoesaProjectStart? JointDecisionMaking
Worktogetherwithfunctionalpartners
InvolvementofTopDecisionMakers Involvetheentire“c”suite
StandardEvaluationMethod Sharedunderstandingofhowtheprojectwillbejudged
ScreenforTechnicalConsiderations
IT Budgeting and Decision Making, Chapter 6
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WhereDoesaProjectStart(cont.)
FormalBusinessCaseMadeMustunderstandthetangibleandintangiblebenefits
PartnershipwithFinanceOfficeWorkingtogethertounderstandthefinancialimpact
ITStrategicPlanMulti‐yearplanfortechnology
IT Budgeting and Decision Making, Chapter 6
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StrategicPlans
DoyouhaveanITStrategicPlan?DefinethemissionoftheentireorganizationPlantodevelopenablingtechnologiesthatsolvetheproblems2to3yearsinlengthOverarchingdocumenttoguideITforward ItisalivingdocumentthattakescareandfeedingEnsureeveryprojectundertakentiesbacktoplan
IT Budgeting and Decision Making, Chapter 6
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ITBusinessCasesTheEssentialsAReturnonInvestmentAnalysis(ROI)AStandardSetofEvaluationCriteriaAlignmentandIntegrationwithBudgetingProcess Intra‐organizationalCooperationAccountabilityforResults
IT Budgeting and Decision Making, Chapter 7
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DevelopingITBusinessCases
1. ClearlyUnderstandVisionandGoals
2. EvaluateExistingSystems
3. IdentifyAlternatives
4. RuntheNumbers
5. EstablishPerformanceMeasures
IT Budgeting and Decision Making, Chapter 7
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OaklandCountyProcess
1. DevelopaScopeandApproachDocument/ROI
2. ClearlyidentifytheTangibleandIntangibleBenefits
3. GainLeadershipGroup(LG)approvaltodoaprojectsizing
4. GainLGapprovaltoincludetheprojectintheITMasterPlan
5. FundingmustbedeterminedpriortoLGapproval
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pay for it ONCE“Build it ONCE,
benefits.”EVERYBODY&
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ROIAnalysisofVirtualizationProject
Description Year1
Benefits/SavingsTangibleBenefitsSubtotal $1,287.390
CostAvoidanceSubtotal 0
CostsDevelopmentServiceSubtotal: $267,340
HardwareSubtotal: $679,642
SoftwareSubtotal: $269,680
InfrastructureSubtotal: $33,638
AnnualStatisticsAnnualTotalSavings $1,287,390
AnnualTotalCosts: $1,250,300
AnnualReturnonInvestment: $37,090
AnnualCosts/SavingsRatio: 97.12%
YearPositivePaybackAchieved Year1
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ITPlanningProcess
Planningfortechnologyprojectsisa“longdistance”raceandnota“sprint”
CarefulplanningandstrongprojectmanagementwillhelpITbesuccessful
Running the Government Race, 2010
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ITPlanningProcess
Mustinvolvepartnerstoensurebuy‐in2yearplanningtimeframeDevelopcommittees/leadershipgroupsconsistingofpartnercommunity
DevelopstrongprocessesandstandardsLedbyProjectManagementOffice(PMO)Developmentorshipandguidance
IT Budgeting and Decision Making, Chapter 6
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ProjectManagement
DoyouknowwhatProjectManagementmeanstoyourorganization?
DoyouhavestrongProjectManagementinyourorganization?WhyshouldanorganizationinvestinProjectManagement?
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ProjectandPortfolioManagement(PPM)
CreationofaProjectManagementOffice(PMO)maybenecessarytoleadtheeffort
Mustmeetwithkeystakeholderstounderstandtheirbusinessandtheirneeds
MustunderstandtheoverallneedsoftheorganizationApprovetheprojectcharterandmanageresourcesAssessandmitigaterisks
IT Budgeting and Decision Making, Chapter 11
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PPMCriticalSuccessFactors Securetopmanagementcommitment
Understandthatimplementationisabusinesschangeeffort
Devotethenecessaryresources
TheProjectManagerrules
Setcleargoals,scopeandexpectations
Trackprojectprogress,resultsandscope
Communicateeffectivelyandoften
Understandandaddressrisks
Controlprojectscopeandminimizedisruptionsbymanagingchange
Testeverywayyoucan
IT Budgeting and Decision Making, Chapter 11
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BuildversusBuy Build?
StrategicDirection Whatresourcesexist Dowewanttobuild?
Costs Software,Hardware,Licensing,Labor OngoingMaintenance TotalCostofOwnership
Buy? StrategicDirection
Dopackageofferingsexist? Dowehavetheskillstoimplement?
Costs Software,Hardware,Licensing,Labor OngoingMaintenance TotalCostofOwnership
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InsourceversusOutsource Insourcing&OutsourcingarepotentiallyvaluabletoolsforITservicedelivery RightsourcingwillbenefittheITorganization
Mustrationallyevaluatetheoutsourcingopportunities
Drivedowncosts Effectivelyleveragehumanresources
Sourcingcanrangefromlittleornoeffectivepoliciestobeinganintegralpartofanorganizationssuccess
Completeoutsourcingisnotrecommended
IT Budgeting and Decision Making, Chapter 13
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SystemsIntegrations
ERPSystemstouchnumerousoperationalsystems Integrationsmustbecarefullythoughtoutduetocosts
DevelopmentCostsMaintenanceCosts VersioningCosts
ShadowSystemsmustbereplacedorminimizedWhatoperationalunitsNEEDandnotwhattheyWANTSteeringCommitteemusthavefinaldecisiononintegrations
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SoftwareLicensingandMaintenance
LicensingModelsvarydependinguponhostingmodelTermsandConditionsmustbecarefullynegotiatedCloudProcurementTs&CsareidentifiedintheCenterforDigitalGovernment’spapertitled“CloudandAs‐A‐ServiceProcurements”
LongTermsupportmodelmaychangeovertime
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InfrastructureNeeds
Infrastructureneedsdependonhostingmodel InternallyHosted ExternallyHosted CloudHosted
Buyfortomorrowandnotjustfortoday CapacityPlanning FutureGrowth
DisasterRecoveryandBusinessContinuityRecoveryplanningimportant
Engagethirdpartyexperts
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OnPremiseversusCloud
Costsvarygreatlyforonpremiseversusthecloud Upfrontstartupcosts Ongoingmaintenancecosts
CapitalExpensesversusOperatingExpensesRedundancyOnpremiseandsecondarylocation
Cloudlocationsacrossnation
Connectivity Lackofspeedkills
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Training
Technicaltrainingshouldstartearlyintheprocess Technicalandprojectmanagementtraining
Trainingofoperationalunitstaffshouldcommenceshortlyafterinitialpurchase Nationalconferences Onsightandoffsighttraining Ongoingrefreshercourses
Trainingneverstops TechnologyandBusinessProcesseschangeovertime
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VisionaryLeadershipDoingMorewithLessUsingTechnologytoImproveBusinessProcesses
DrivingChangeThroughouttheOrganization
OaklandCountyVision
L.BrooksPattersonOaklandCountyExecutive
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E‐FinancialSystemImplementationProjectCostSavings/AvoidanceStreamlinedOperationsEarlyPay‐BackBusinessProcessRe‐engineering
ERPVisionCSMFO2016‐ Pre‐ConferenceWorkshop‐ ERPfromAtoZ
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PeopleSoftEnterpriseHumanResourcesandPayrollsoftware– usedfor5yearssuccessfully
PeopleSoftfinancial,supplychain,andself‐servicesolutionsimplemented2004‐2006
Wm.ArtHoldsworth,DeputyDirectorDepartmentofManagementandBudget
PeopleSoftFinancials:Planning,Approval&Implementation
UseCaseCSMFO2016‐ Pre‐ConferenceWorkshop‐ ERPfromAtoZ
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Phase1: HRupgrade,withnew‐service/eApplications,TimeandLabor,End‐UserProductivityKit,andPortal
Phase2: PeopleSoftEnterpriseFinancialManagement,SupplyChainManagement,andAnalytics
ProjectScopeCSMFO2016‐ Pre‐ConferenceWorkshop‐ ERPfromAtoZ
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Limitationstoexistingtechnology(aging)
Risk(existingwasunsupported)
Costofownershiprisingwithexisting
Changeinaccountingstandardrequirements
Softwareadherencetobestbusinesspractices
ExistingTechnologyvsNewTechnologyDecisionPoint
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GAP&ROIAnalysis
DefineAnticipatedBenefits&Measurements
FromInstallationtoImplementation
TotalCostofOwnershipCSMFO2016‐ Pre‐ConferenceWorkshop‐ ERPfromAtoZ
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TimelineDiscovery– DocumentusageandidentifyneedsGoal– IdentifycostsavingsopportunitiesMetrics– Timetocompletetask(Oldprocessvs.Newprocess)
Result– 500GAPs
Gap&ROIAnalysisCSMFO2016‐ Pre‐ConferenceWorkshop‐ ERPfromAtoZ
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“Self‐service”accesstoinformationbystaffandconstituentsviaportal
EliminationofKPMGPerformanceSeriesadministrationandsupportcosts
Reductioninhardcopyreportinganddistributioncosts
Increaseinusageofself‐serviceportal
Expenditurereductionforsupportservices
Reductioninprintedreports IncreaseindownloadsofreportsfromtheportalandPeopleSoftsystems
AnticipatedBenefits&MeasurementsCSMFO2016‐ Pre‐ConferenceWorkshop‐ ERPfromAtoZ
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Eliminationofstandaloneandshadow(duplicative)systemstoreallocatestafftime
Eliminationofcustomsystems Reallocationofstafftimefromportaluse
Checklistofsystemsto“turn‐off” Checklistofsystemsto“turn‐off” Reductioninsecurityadministrationdatabases
ReductioninSupportCentercalls
AnticipatedBenefits&MeasurementsCSMFO2016‐ Pre‐ConferenceWorkshop‐ ERPfromAtoZ
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Enhanced,proactivesupplychainmanagement
Increasednumberofbidders Increased%ofpurchasesviaWeb EnhancedturnaroundtimeforRFP/bidprocess
E‐catalogpurchasingbydepartmentswithpre‐approved,negotiatedpricing
Statisticalanalysis‐basedreductioninpoorperformingvendors
Enhanceearlypaymentdiscountrealization
Optimizationofpurchasequantities
AnticipatedBenefits&MeasurementsCSMFO2016‐ Pre‐ConferenceWorkshop‐ ERPfromAtoZ
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Support Training Knowledgebase Enhancements Cost
FromInstallationtoImplementationCSMFO2016‐ Pre‐ConferenceWorkshop‐ ERPfromAtoZ
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Goal: Seekprojectapprovalandlevel‐setexpectations
Why?CriticalsystemforrunningCountybusinessEveryfinancialtransactionaffectedPeople‐intensiveprocessSignificantrisk
CommunicationsPlanCSMFO2016‐ Pre‐ConferenceWorkshop‐ ERPfromAtoZ
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Channels: SteeringCommitteeCross‐functionalprojectmanagementteam Stakeholdersparticipation
ApprovalProcess: StakeholdersExecutiveStaff LegislativeBranchEmployees
CommunicationsPlanCSMFO2016‐ Pre‐ConferenceWorkshop‐ ERPfromAtoZ
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ImplementationTeam&ProjectManagement– hybridoffunctionalandpyramidapproach
“HotSkills”PayBusinessProcessRe‐engineering(BPR)– datacollectionanddataprocessing
VanillaImplementation– accommodationsandcustomizationsSelectiveOutsourcing– RFPrequirements,certifications,references,etc.
ImplementationCSMFO2016‐ Pre‐ConferenceWorkshop‐ ERPfromAtoZ
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Successes:Managedexpectationsthroughestablishedcommunicationchannelsandtraining
Trackingbenefitsafterimplementation/measuringresultsovertime Quantifyefficiencies ROI
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ROIAnalysisofERPProjectDescription Year1through6
Benefits/SavingsTangibleBenefitsSubtotal $0
CostAvoidanceSubtotal $20,644,543
CostsUser&ITDevelopment/LaborSubtotal: $12,242,779
HardwareSubtotal: $1,985,333
Software/LicensingSubtotal: $2,686,076
ContingencySubtotal: $1,534,892
Benefits vsCostsTotalBenefits/Savings $20,644,543
TotalCosts: $18,449,080
TotalReturnonInvestment: $2,195,463
Costs/SavingsRatio: 89.37%
YearPositivePaybackAchieved Year6
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Costs:Year1:$4,789,238Year2:$6,474,928Year3:$5,656,528Year4:$468,838Year5:$516,853Year6:$542,696
TOTAL:$18,449,080
Benefits/Savings:Year1:$1,253,200Year2:$339,335Year3:$2,799,857Year4:$4,116,684Year5:$5,270,008Year6:$6,865,459
TOTAL:$20,644,543
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CostandBenefit/Savings(6‐years):
TotalCostofOwnership: $18,449,080TotalBenefit/Savings: $20,644,543CumulativeROI: $2,195,463
CumulativeCost/SavingsRatio:89.37%
Paybackoccurs:Year6IntangibleBenefit: Customerserviceresponsivenessimprovement
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LessonsLearned:Adoption/pushback(passive/aggressive)Aggressivetimeline/stressedoperationsKnowledgetransfer(business/technological)Ongoingcosts/fundingmethodologyDependencyonimplementer
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1. Leveragetechnologydollarsacrossentireenterprise
2. Focusonbusinessre‐engineering,nottechnologyimplementation
3. Businessdrivestechnology,technologydoesNOTdrivebusiness
Technologyistheeasypart!
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1.WhathaveIlearned?
ManyhavenoideawhatanERP is.
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2.WhathaveIlearned?
Youwilllivewiththisdecision foryearstocome.
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3.WhathaveIlearned?
Communicationiseverything!
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4.WhathaveIlearned?
EducatedStakeholderswillmakeorbreaktheproject.
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5.WhathaveIlearned?
Technologyistheeasypart
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6.WhathaveIlearned?
Theoperationalunitswillsufferduringthechange
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7.WhathaveIlearned?
Thescopeofthebusinesschangesmaybemassive
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8.WhathaveIlearned?
TheROImaynotbeinharddollars
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9.WhathaveIlearned?
TherearenoshortcutstoERPsuccess
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10.WhathaveIlearned?
It’sallaboutthePEOPLE!
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Thanksforyourtimetoday!PhilBertolini,CIO/DeputyCountyExecutiveOaklandCounty,[email protected]
TerryHackelman,ManagingPrincipalNexLevelInformationTechnology,[email protected]
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