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SAP End User Competency

They Drive the Business Processes That Drive Your Business Performance

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Research Sources

META Group “TCO of ERP”

META Group/RWD Technologies: End

User Competency

META Group “The State of ERP Services

2004-2006”

Various other META Group research

sources

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SAP Disappointment

While the beat of the ROI drum around

ERP is incessant, most firms with ERP

investments have their heads turned in

wrong direction. • Integration

• Extended applications (CRM, SCM, et al)

• ROI-related anything

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ERP Clients Look into the Mirror

 

Perceived Responsibility for Problems with ERP Implementation

Number Answering

Our Own Organizati

onSoftware Vendor

Systems Integrator

Don't Know

There was no quantifiable measurement of business benefits derived from implementation

59 69% 12% 10% 8%

We had insufficient knowledge transfer 56 34% 20% 36% 11%

After go-live, we broke up the implementation team and left IT to support the installation

55 82% 9% 0% 9%

We shortchanged end user training due to time or budget limitations

51 78% 6% 10% 6%

We over-customized the software rather than adopting inherent business practices

47 74% 4% 21% 0%

Little or no planning was given to post-implementation support

40 55% 5% 33% 8%

We under funded the project and finsihed late and over budget

31 74% 13% 10% 3%

We failed to manage scope 30 73% 0% 17% 10%

We have too many versions or instances to manage and are not getting integration as planned

21 52% 19% 19% 10%

Q36.Who do you believe is most responsible for the problems you experienced with your base ERP

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Audience Poll

How many of you are in firms that have

had SAP for more than 2 years?

How many of you have had any

substantial form of repeat or continuous

SAP end user training?

How many rely on user-trains-the user?

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End User Attrition

Source: U.S. Department of Labor

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End User Scenario

GoLive

More Change toBusiness Process

/Attrition

Change toBusiness Process

InitialTraining

Expert

Functional

VersionUpgrade Degraded

Year 0 Year 1 Year 2

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Training Plans Presume Short-term Utilization

Training budgets

are based upon

pre-ERP cycles

Training budgets

seldom include

repeat or

continuous

training

Day 1: The End of the Beginning

1-3 Years

Planning View: the ERP wedding

15-22 Years

Client Reality: the ERP marriage

Investment scope

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-20% -10% 0%/Midpoint 10% 20%

Executive Reporting

End User Competency

Functional Integration

Application Mtc Costs

Financial Integration

Business/IT Alignment

Architecture

Other

Respondents could choose multiple pain-points. The average % of pain points cited was 38% which represents the midpoint. This graphic shows the relative response variance from midpoint.

Query of 124 firms with ERP installed

ERP Issues

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Source: META Group “TCO of ERP”, 2003

Dedication to User Training

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Optimal ERP End User Competency

How competent are your ERP users?

Do they take full advantage of ERP functionality?

Did they receive adequate initial training?

Do they receive continuous training?

Do they adequately drive the business processes?

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76% of Firms Polled Face User Competency Challenges

Our end users are struggling to make use of the softwareOur end users are struggling to make use of the software

11%

Our end users fully understand the software and are able to gain full benefit of its functionality.

Our end users have a sufficient understanding of the software but are not gaining full benefit of its functionality

Our end users have the ability to perform their jobs more effectively due to competency in using the application and knowledge of how it supports our processes.

13%

64%12%

How competent are your end users?

Highly Competent

Competent

Sub-StandardFailing

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Refresher and periodic re-training lead directly to competency gains

All end users receive refresher training on a regular basis

Relevant end users receive training whenever there are major system changes or upgrades

Relevant end users receive training whenever there are major system changes or upgrades

11.1 %11.1 %

Highly Competent + Competent

Sub-standard + Failing

56%37 %

6 %

No training providedNo training provided

13% 22 %

65 %

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SAP Training Resource

SAP

Dedicated third-party SAP trainers

Super users

SI’s

LMS software

Simulation software

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What practices are applied by the 24% of firms with competent end users?

83% (During implementation)

instituted a comprehensive training

plan as opposed to 22% of the firms

with sub-standard competence

81% employed trainer-trains-the-

trainer technique as opposed to 65%

of the other firms

90% combine internal staff with

Third Party or Vendor-supplied

training

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Worst practices

One-time end user training

Ongoing user trains the user

No outside training resource

No competency measurement

No simulation

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For post-implementation training support, successful firms…

ERP vendor-supplied

Third-party ERP training

Third-party systems integrator

Independent consultant

Internal staff

Highly Competent + Competent

20%10%15% 5%90%

Sub-standard + Failing

17%13% 5%24%78%

45% 35%

engage dedicated outside trainers, not independent consultants

Instructor Mix

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The ROI of End User Competency

End user “functions”

drive the business

processes that drive

business

performance

Alice in Wonderland

Order Fulfillment Process

Order Fulfillment Process

Sample Business Performance KPI’sReturn on salesReturn on assetsNet sales per employeeRatio of Assets/Liabilities

Sample Business Performance KPI’sReturn on salesReturn on assetsNet sales per employeeRatio of Assets/Liabilities

Procurement Process

Procurement Process

Production Process

Production Process

Sample Major Business Processes

Business Process Drivers

Key Performance Indicators

Profit & Loss

ERP User Competency

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META Group Advisory

Develop a continuous training program

Mix qualified outside training resource

with dedicated internal resource

Monitor end user competency with an

eye on business benefit

Bottom Line: End users drive your business processes Bottom Line: End users drive your business processes every bit as much as does the softwareevery bit as much as does the software

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Question?

Audience Response

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