Fail to prepare, prepare to fail October 2011. Introduction to Sage.
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Transcript of Fail to prepare, prepare to fail October 2011. Introduction to Sage.
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What Sage does
Sage is a leading supplier of business management software and services to over 6 million customers worldwide. From small start-ups to larger organisations, we make it easier for companies to manage their business processes
Our vision is to be the most admired and respected business software and services provider in the world
Sage - Global Vendor, Local Strategy
Sage is a leading supplier of business management software and
services to over 6 m customers worldwide.
From small start-ups to larger organisations, we make it easier for
companies to manage their business processes
3rd business management software vendor (Total ERP Software Revenue Market
Share by Vendor, 2008 (Source: Gartner June 2009)
GlobalGlobal
£1.439Bn revenue
6 m customers world-wide
13,100 employees in 26 countries
27,000 resellers, 40,000 accountants
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What are business management solutions?
CustomersImprove serviceMeet their needsBuild loyaltyMultiple payment optionsMultiple channels
OperationsManufacturingDistributionServices
PeoplePay correctly & on timeRecord sickness & absenceFile legal documentsManage performanceDevelop potential
SuppliersGet what you need on timeManage costs
FinancesManage debtors & creditorsManage cash flowImprove revenue and profitForecasting & PlanningElectronic payment processing
AdvisorsFile accounts Statutory reportingForecasting & business planningAdvice & help from Sage
Software and services that help companies manage their business processes and relationships.
Yourbusiness
Customers
People
Fina
nces
Operations
Suppliers
Advi
sors
Market Trends on our radar
• e-commerce maturity
• IT impact on enterprise productivity
• Web users and web clients explosive growth– 5.5M new users every week– 3.2+B mobile devices vs 980+M PC
• From Web 1.0 to Web 2.0– The participation age – next generation users– User generated content prevails– From Desktop to Webtop: The user centric
UI on the net– Social Networking is centre stage to Web 2.0
• Enterprise 2.0: Web 2.0 technologies enter the enterprise space
– “Enterprise 2.0 is the use of emergent social software platforms within companies, or between companies and their partners or customers.” Andrew McAfee
• Modernisation and development will be user centric
Trends and needs into 2012 - Top Drivers for Strategies
• Reduce Time & Cost
– Streamline & accelerate business processes
– Optimise the use of current capacity
• Interoperate across locations
– Standardise business processes
– Provide visibility across functions & departments
– Cope with increasing complexity
• Improve Customer Experience
– Link global operations for better collaboration
– Increase agility & responsiveness
– 360° visibility
A recent survey revealed that 27% of clients
either have not been able or did not attempt
to measure business benefits…an additional
64% have only measured ‘some’ benefits.
Determining benefits, along with lack of a
repeatable ‘benefits process’ were the top
two obstacles to justifying investments.”
Source: Gartner Group
“Less than 25% of IT projects will
deliver hard, monetary benefits
that exceed the cost of the
implementation”Source: Information Week
Benefits Realisation - OverviewCommon Challenges
Benefits Realisation - OverviewCommon Challenges: Why Projects Fail
•Unclear business rationale for implementing ERP/CRM
•Lack of adequate executive buy-in
•Failure to consider key business requirements during vendor selection process
•Poor project management and project cost controls
•Lack of focus on organisational change management, communications, and training
•Failure to measure performance / ROI and to conduct post-implementation audit
Benefits Realisation - OverviewPurpose of Benefits Realisation
•A comprehensive project approach that focuses on identifying, measuring, and ensuring the business benefits achievable through applying technology
•Enables alignment between mid-level managers and project benefits
•Holistic approach with a focus on Performance Measurement, Organisational Change Management (OCM), Program Management support, and process improvement
Performance Management•Business Case / ROI Definition•Operational Measures•Benchmarks and Perf. Targets•Manage Measures to Bus. Case
Business Processes•Process Improvement & Design•Process Measures & Value-Add•Staff / FTE Optimisation•Six-Sigma & Quality
Organisational Change•Organisational Readiness•Organisation Design•Job and Work Design•Training & Communications
IT / Architecture•Vendor Selection•Project / Program Management•Solution Architecture•Reporting and Business Analytics
Business Strategy Alignment•Strategy Definition / Articulation
•Performance Measure Alignment with Strategy
•Business Optimisation•Benefits Realisation
Applies To:•ERP / CRM Projects
•Merger and Acquisition Integration•Operational, Process, and Supply Chain Improvement
•Global Operations Standardisation and Integration•Shared Services and Outsourcing
Benefits Realisation - OverviewKey Components of Benefits Realisation
ERP Benefits Realisation - ApproachThe Business Benefits Pyramid
Business Process Improvement
And Business Requirements
Technology Development
Organisational Design and Change
Management
Performance Measurement
For projects to be successful, business processes should serve as a foundation, with IT and organisational change management enabling those processes.
The end result is optimised business benefits and a strong project ROI.
ROI
Pro
gram
Man
agem
ent S
uppo
rt
Corporate Metrics Tied directly to corporate-level goals
Sample Metrics:• Wholesale sales and profit• Retail sales and profit• Product development time
to market
• Sales and profit by region• Sourcing costs• Number of product
introductions per year
Business Unit Metrics
Business Unit Metrics
• Average inventory costs• Number of new product
designs completed per year• Inventory accuracy
Departmental Metrics
Individual Metrics Individual Metrics
Departmental Metrics
££s SavingsMeasured Results
ROI
Benefits Realisation - Approach High-level Measures Should Be Cascaded to Lower Levels of the Organisation to Drive Business Results
• Average inventory cost by location
• Number of new designs per employee
Business Case, Measures, and ROI
Process Benefits• Improved process cycle times• Lower labour costs• Higher efficiency
Capital and Infrastructure Benefits• Reduced inventory ££s• Lower IT infrastructure costs• Decreased A/R levels• Increased A/P levels
Process Improvement
Average cycle times, average labor costs
Org. DesignIndividual job roles, MBOs, performance
evaluations, individual scorecards
Executive Alignment
MBOs, compensation structure, project
sponsorship
IT ConfigurationProcess workflow
modification, report designs, analytics
Benefits Realisation - Approach Focus on Measurement Enables Other Change Initiatives
Benefits Realisation - ImplementingFocus is on Integrated Set of Value-Add Activities
• Business Process Improvement / Optimisation and ERP/CRM Business Requirements
• Performance Measurement and Management
• Organisational Change Management, Training, and Communications
• Post Go-live Audit and Root Cause Analysis
• Program Management Support and Project Quality Assurance
Benefits Realisation - Implementing Sample Project Tools
• Business Case and Performance Metrics
• Organisational Readiness Assessments
• Job Impact Analyses
• Process Designs
• Process and Organisational Change Implementation Plans
• Benefits Realisation Scorecards
• Root Cause Analysis workshops and results
• Post-Implementation Corrective Action Plans
• Communications Plan
• Project QA Review and Assessment
Benefits Realisation - ImplementingCan Begin Implementation in Multiple Phases of Lifecycle
• During Vendor Selection and Project Planning– Establish Benefits Realisation framework early in process
– Establish baseline metrics and align to business case before project begins
• During Implementation– Can refine implementation process to emphasise process improvement and
performance measures
– “Project clean-up” to redirect troubled or over-budget projects to refocus on business value
• After Go-Live– Continuously improve and streamline business processes
– Establish operational performance measures and targets to improve business performance
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The purpose of this report is to summarize the findings and recommendations resulting from the Unapplied Cash Project undertaken by The North Highland Company from August 21, 2001 to October 16, 2001. This report contains the following sections: Project Goals Overall Project Status Approach and Work Performed Project Findings and Recommendations Conclusion Project Goals
To significantly reduce the amount of unapplied cash and other open credits in a 6-8 week timeframe.
To identify the root causes of the unapplied cash build-up. To analyze and implement solutions to prevent recurring problems.
Overall Project Status
The following table shows the number and dollar amount of unapplied cash transactions (RUs) measured at the beginning and ending dates of the project, backing out unapplied cash since 8/20/01:
August 21, 2001 October 12, 2001 Total Reduction # of
Items
Amount # of
Items
Amount
Unapplied Cash (RUs)
5,371
$7,098,791
3,188
$4,431,536
RUs since 8/20/01
- - 745
1,511,956
Unapplied Cash Prior to 8/20/01
5,371
$7,098,791
2,443
$2,919,580
2,928
$4,179,211
Over the 2-month project period, unapplied cash measured by number of RUs and dollar amount was reduced 55% and 59%, respectively.
Cost / Benefit Review If the unapplied cash had been resolved through a collection agency, the cost of the reduction would have been $417,921 (10% discovery fee * the unapplied cash reduction). The North Highland invoiced amount for the project will be _________. This represents a savings of $__________ compared to sending the items to a collection agency.
System Go Live
Benefits MeasurementBalanced scorecards,
reports
Root Cause Analysis of Benefit Gaps
Fishbone diagrams, activity based costing, process analysis
Implement Corrective Action Process improvement plans,
Org. realignment, job redesign
Benefits Realisation
Benefits Realisation - Results Focuses on Improving Post-Go-Live Results
Benefits Realisation - Results Creates Measurable ROI and Business Value
• Reduces project risk
• Closely aligns business and technical activities
• Proactively identifies and addresses potential obstacles to realising project benefits
• Provides more thorough understanding of underperformance and lessons learned
• Improves justification for future IT project approvals
• Provides quality and continuity through ERP project lifecycle