ERP Comes of Age - Anthony W. Perrone 8212015
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Transcript of ERP Comes of Age - Anthony W. Perrone 8212015
1© Copyright 2015 ProNexus LLC All Rights Reserved
ERP Comes of AgeFrom Differentiator to Essential Building BlockWhat you need to know about what’s coming
August 2016
Anthony W. PerroneVice President, Enterprise Technology Solutions
22© Copyright 2015 ProNexus LLC All Rights Reserved
ERP to Date
Strengths• Common, integrated data• Single version of “truth”• Facilitates Internal Controls• Official Transaction
Repository – Detailed History
• Can Be Transformative Catalyst for change
Challenges• Has become “table stakes”• Focused internally• Implementation may be
lengthy and costly• Technical installation vs
effective implementation• ERP by itself rarely offers
competitive differentiation
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Data, Information and Its Relative Value
• Enterprise Sustainability Management
• Business Intelligence
• Enterprise Resource Planning
• Manual Accounting
Wisdom
Knowledge
Transactional Data
“Chaos” – Nothing But Financial Information
Rel
ativ
e Va
lue
Sust
aina
bilit
y Po
tent
ial
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ERP: No Longer an “End All”
Changes We Already See• Market demanding “cheaper, better, faster.”• Customer experience• Race for “disruption”• Business, socio-economic, and
environmental interdependencies• Increased availability / adoption of SaaS• Consumerization of IT• Internet of Things (IoT)
Rate of Change
Rate of organization’s ability to adapt
“Innovation Gap”
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Global Mega-Trends Re-Shaping Business
Changes To Come• Acceptance of climate change prompts business risk mitigation• Increased regulatory pressure• Sustainability reporting transparency• Development of 3rd world countries• Aging population and displacement of Baby Boomer Generation• Innovation Engineering
- Relentless pursuit of “cheaper, better, faster”
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Business System Maturity Model
Chaos
LedgersNotebooks
Paper
Limited Data,
Islands of Information
Silos – No Integration
Accounting Systems
Mainframes and Dumb
Workstations, “Time
Sharing”
More Data, Islands of
Information
Inter-Departmental
IntegrationMRP & MRP II
Mini Computers, PCs, Local
Area Networks
Closed-Loop
Information and
Internal Transactio
n Flow
Supply Chain Integration
ERP & ERP II
Client-Server, LAN/WAN,
Internet
Integrated Information
Flow – Internally and with Trading Partners
Transaction Recording and Reporting
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Chaos
LedgersNotebooks
Paper
Limited Data,
Islands of Information
Silos – No Integration
Accounting Systems
Mainframes and Dumb
Workstations, “Time
Sharing”
More Data, Islands of
Information
Inter-Departmental
IntegrationMRP & MRP II
Mini Computers, PCs, Local
Area Networks
Closed-Loop
Information and
Internal Transactio
n Flow
Supply Chain
IntegrationERP & ERP II
Client-Server, LAN/WAN,
Internet
Integrated Information
Flow – Internally and with Trading Partners
Transaction Recording and Reporting Wisdom & Insight
Mor
e H
isto
rical
Mor
e Pr
edic
tive
Business Sustainability MoreLess
Business System Maturity Model
88© Copyright 2015 ProNexus LLC All Rights Reserved
Information: Life-blood of Innovation!
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What Drives Innovation?
61% of CEOs say that innovation is a priority or a primary focus within their business. PwC Survey
• 57% - right culture
• 44% - strong visionary Leadership
• 37% - willingness to challenge norms & take risks
• 31% - ability to capture ideas throughout organization
• 31% - capacity & capability for creativity
KEY: Must generate LOTS of ideas and discern the best
Products Market Expansion
Channel Partner
Relationships
Services Production Processes
Facilities Improvement
DAT
A fro
m In
tegr
ated
G
loba
l Sys
tem
s
1010© Copyright 2015 ProNexus LLC All Rights Reserved
New & Maturing Application Suites
• 1st Time Gartner Quadrant – 2014
• Traditional Players
• Maturing Specialized Players
• New Entrants
• Scope- Environmental Management
- Health Management
- Safety Management
- Product Safety
- Risk Assessment & Analysis
Gartner Magic Quadrant – EHS Suites
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Enterprise Sustainability Management Application Architecture
EHS
Energy Mgmt
Carbon Mgmt ERP
PLM
Enterprise Risk Mgmt
Social Media
Data Warehouse
Faci
litie
s M
gmt D
ata Product Usage Data
Public Domain Data
Customer Experience
Inference Engine
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Implementation Implications
• Start with desired end state• Engage customers and other external stakeholders• Optimize business processes more broadly• Sufficient focus on Change Management• Technical architecture becomes more strategic decision• Project management PLUS program management• Enables creative design and implementation of
market-making business models
1313© Copyright 2015 ProNexus LLC All Rights Reserved
Summary
• Stable ERP an essential, foundational building block • ERP is technology best applied as tool for business
transformation• Business transformation requires being mindful of people,
process and technology• Organizational change management is critical
implementation element• Integration of external data has become increasingly
important (e.g. Customer Experience)
1414© Copyright 2015 ProNexus LLC All Rights Reserved
Summary
• Management by information – never more critical• Resulting wisdom & insights fuel engineered innovation• Project management still essential • Program management skills becoming more relevant• Enterprise Sustainability Management – a collection of
integrated processes, application systems and management principles to support innovation of emerging business operating models
15© Copyright 2015 ProNexus LLC All Rights Reserved
Thank You!Anthony W. PerroneVice President, Enterprise Technology SolutionsProNexus LLC171 Sully’s TrailPittsford, NY 14534