itk template approach + dynamics case study• modern erp system with the same business processes as...
TRANSCRIPT
www.itksolutionsgroup.com Executive Summary: A Telco Cooperative had an aging ERP system from Lawson Software (now Infor). This twenty-year-old system included many customizations they had undertaken to make the system specific to their historical requirements. They needed to modernize to get their disparate systems talking to each other and sharing data. They also needed to update their business processes to reflect current best practices. Members of the Client team had implemented the Lawson software almost eighteen years ago and that long-running relationship is why they reached out to the same team at ITK, again.
ITK Template Approach + Dynamics
CASE STUDY
QuestionsthisTelcoCoopwasasking…• HowcanwebemoreefficientwithITspendingandfixedcostswhileencouraging
growthinthefuture?• Howcanwemoveawayfromgrowingmonthlymaintenancecostsforoutdated
software?• WhatERPSystemshouldweusethatintegrateswithoursystems?• Howcanwegetourdisparatesystemstoworktogetherbetter?• Howcanwebecomemorecompetitiveandmarket-driven?• HowdoweupdateourITskillsetandtoolsettokeepupwithbestpractices?(They
wereusingAS400technology,whichwasveryfasttwentyyearsagobutoutdatedbytoday’sstandards)
ThisTelcoCoophadanERPsystemthatwasapatchworkofLawson,smallerarchaicsystems,customcodeandaginghardware.TheirCEOwasparticularlyinterestedinmodernizingtoimproveefficiencytodayandalsotopavethewayforfuturegrowth.TelcoCoopshavehadahistoryofbeingsupportedintheirmissiontobringphonecoveragetoruralareasbygovernmentsubsidies.However,thegovernmentisnolongerinvestingasheavilyinruralphonelinessincebroadcellphoneadoptionenteredthepicture.Thishasledtoagreaterburdenofphoneinfrastructuresupportandinfrastructuresoftwaretechnologyimprovementsbeingbornebyphonecompanies.Translation:thereisapressingneedatthiscompany(andothersimilarcompanies)todowhattheydobetter,smarterandmoreefficiently.Inparticular,theyneededtoshiftfromacompanysupportedbygovernmentinvestmenttoamarket-driven,competitivebusinessmindset.
CHALLENGES
• MicrosoftDynamicsAX• Finance/GeneralLedger:AccountsPayable,lightAccountsReceivable,Project
Accounting(projectandfinancialaccountingconsistentwithFCCPart32Accountingregulations)
• MicrosoftDynamicsPayroll-Customizedwebtimesheetentryw/approvalprocess(Theyhadacustomizedtimesheetentryformthatwewereabletoimproveupon)
• Inventory&ExpensePurchases-Customizedinternetrequisitionswithworkflowapprovaltocontrolinventoryandexpensepurchases
• ITKTemplateApproach:alessexpensive,moretimeefficient,streamlinedERPImplementation.MakesamodernERPsystemaffordabletoTelcoCoopslikethisTelcoCoop
• Changemanagementplantoensureadoptionofnew(moreefficient)businessprocessesinlinewithindustrybestpracticesandthenewlyimplementedtechnology
SOLUTIONS
• NineMonthImplementation• LoweredtheFinancialBarriertoEntrybyusingtheITKTemplateApproach• ModernERPsystemwiththesamebusinessprocessesasFortune500companies• ReducedongoingITexpenditure• BusinessInsightsmadepossiblebysharedaccesstodatathroughoutthecompany• Allowsforeaseofacquisitionofnewlegalentities,corporateassetsandstrategic
investments(becausetheynowhasamoreflexiblesystem,whichcaneasilyintegratewithnewassets.)
“We can’t and should not celebrate our technology, the only thing worth celebrating is the success you have with our technology.”
- Satya Nadella
RESULTS
• NineMonthImplementationo ThankstotheITKTemplateApproachwecouldshrinkthetimeofthe
implementationo AtraditionalERPimplementationwouldbe12-16monthscomparedto9
• LoweredtheFinancialBarriertoEntrybyusingtheITKTemplateApproach
o TheITKTemplateApproachrequiresasmallerinvestmentthanatraditionalERPImplementation
o TelcoCoopsarefacingshrinkingmarginsandintensecompetitionfromcellularprovidersandmanycannotaffordatraditionalERPImplementation
• ModernERPsystemwiththesamebusinessprocessesasFortune500companieso AlongwithamodernERPsystem,theyalsohasupdatedbusinessprocessesin
linewithindustrybestpracticeso Bringsthemintothe21stCenturywithprocessesusedbyFortune500companieso Theseprocesseshelpthembemoreefficient,morenimbleandoverall,more
competitive
• ReducedongoingITexpenditureo Monthlymaintenancecostsreducedby75%o Payrolltaxsoftwarenolongerneededasit’spartofDynamicsAXo Newhiresareeasiertoonboardwhichsavesbothinitialeducationandongoing
supportcosts
• Easeofacquisitionofnewlegalentities,corporateassetsandstrategicinvestmentso It’sdifficultifnotimpossibletoacquireotherbusinessassetsandplugtheir
systemsintoyoursystemswhenyou’reusingatwenty-year-oldsystemo Theynowhavethisflexibility
THE RESULTS: A CLOSER LOOK
• ROI–expectedROIwillbeintwotothreeyears• ImprovedSpeedtoROI–weusedasimplifiedimplementationmethodologywecallthe
ITKTemplateApproachtoprovideforafaster,streamlinedengagement• Scalable-byimplementingamodernERPsystemthisTelcoCoopcanacquirelegal
entitiesandotherassetswithoutworryingabouthowtoplugtheirsystemsintotheirsystems.Thisopensthedooranynumberofacquisitionscenarios
PROJECT IMPACT & FUTURE VISION