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ERP Governance

Methodology & Case Studies

By

ERP Governance Reasons behind the choice of a new ERP system

2

ERP Governance Moving to a new ERP requires awareness and a structured approach

3

ERP Governance How to manage the entire ERP Life Cycle

4

How to select and deploy the new ERP Our Methodological Framework (1/2)

5

How to select and deploy the new ERP Our Methodological Framework (2/2)

6

Process and IS Review Focus on Process Model and Scope

7

Mapping the

company

processes,

designing the

reference template

and deciding the

scope for the ERP

introduction

is a key preliminary

activity for the new

ERP introduction

1

ERP Selection Structured Approach

8

2

STEP 1

«THINK»

Design the ERP Selection process, by defining:

• The process scope for each implementation phase

• The Selection Criteria to drive the choice of the best ERP SW

• The initial SW list

• The company Business and IT team to be involved in the selection

• The work plan

STEP 2

«PREPARE»

• Define and weight the «functional requirements»

• Reduce the ERP vendor list, by applying filtering criteria

• Prepare the RFP document to be sent to the SW Bidders

• Engage the vendors and manage the internal communication

• Review the work plan

STEP 3

«EXECUTE»

• Manage the interaction with the SW vendors, by receiving their

responses and organizing the SW demos

• Coordinate the scoring activity to be executed by the project team

• Proceed with the ERP selection in two steps (Down Selection and

Final Selection)

• Finalize the contract with the selected vendor

ERP Selection Focus on the Selection Criteria and the Evaluation Scorecard

9

2

ERP

“Quality”

Which ERP fit better the “core business” process?

Total Cost of

Ownership

Compare the costs to buy the licenses, to implement and to maintain each ERP

in the selection process

Business

Risks Assess the risks related to each ERP in the selection process

Business

Benefits How much each ERP can improve the performance compared with the «As Is»

situation (also considering the business evolution strategy)?

Vendor

Profile

Which vendor is the most reliable and referred ERP supplier?

This Criteria is typically preliminary to include the vendor in the Short List

ERP Launch Structured Approach

3

10

Organization

1

Program Organization

Process Framework

Roles & Responsibilities

Program Governance

Maintenance & Support

Staffing

Communication and Knowledge Sharing

Cost and Resource Management

Training

Testing

Solution Management

2

Methodology

Template Methodology and Standards

Deployment Methodology and Standards

PMO Methodology and Standards

3

Partners*

Sourcing Strategy

RFP Templates

Vendor Engagement Model

Vendor Management Model

4

Tools

Job Role Definition

Demand Planning, Gap

Analysis and Staffing Plan

Staffing Execution

5

WW Executive Alignment

Regional Orientation

Orientation and Mobilization

6

Core Team Set-Up

BBP/Pilot Preparation

Vendor Selection

Execution

Program Strategy

0

* Only in case of multiple vendor sourcing strategy

ERP Implementation Structured Approach

4

11

Program

Set-Up

Conceptual

Design (BBP)

Pilot

Implementation Roll-Out

Waves

Roll-Out

Waves

Roll-Out

Waves

• Select the system

integrator

• Share the

methodology

• Confirm the Program

roadmap and the

detailed budget

• Anticipate the most

urgent technical and

infrastructure

requirement for the

ERP Installation)

• Kick off the program

• Define the ERP core

solution, discuss in

detail with the

process owner in a

designated series of

workshop

• Seek the solution

formal approval

• Design the TO BE

environment

architecture

(technology and

infrastructure)

• Realize a functional

prototype of the core

solution

• Implement the core

solution in the pilot

site

• Build a kernel to be

use in the

subsequent program

phases

• Stabilize the system

before activating the

roll-out

• Roll-out the template

to the other Sites,

with focus on the

standardization and

limiting the

localization to the

mandatory

requirements

• Setup the application

maintenance

Objectives

Comments • The roll-out steps

should consider the

complexity of the AS-

IS and the business

evolution plan

• Key factor is to have

a strong business

sponsorship and a

group of accountable

Process Owners

• The template should

cover the core

processes and

involve all regions

and countries

• The right pilot site

should cover the

majority of the

processes but with

limited complexity

ERP Optimization Structured Approach

5

12

ERP Maintenance Structured Approach

6

13

ERP

Competency

Center Design

Maintenance

Processes

Design

Service

Provider

Selection

AMS

Ramp-Up

• Mission and span of

responsibility

• Organization: by

process areas /

regions / activity

(projects vs.

maintenance)

• Roles and

Responsibilities

• Skillset map and gap

• Demand planning

and resource sizing

• Staffing and Training

Plan

• Tickets Management

(Incidents, Service

Requests)

• Operational

Maintenance

• Change Request

Management

• Project Management

• Governance

• Service Management

• Resource

Management

• Cost Management

• Sourcing Strategy

• Service Provider Role

and Responsibility

Definition

• Service Provider List

• RFP Document

Preparation and Issue

• Service Provider

Selection and Award

• Service Provider

Engagement and

Management

• Service Control

Processes

• Internal Staffing

(Recruiting,

Conversion, Training)

Execution and

Monitoring

• Maintenance

Organization Start-Up

• Post Audit and

Improvement

Management

Objectives

Comments • The transition requires

a detailed plan and a

dedicated Transition

Manager

• The SAP CC set-up

be activated before

reaching a significant

number of live

countries

• The AM activities

must be carefully

designed to be

compliant to Audit

requirements

• SP selection and

engagement is key

for the future

performance