Building Competitive Advantage through

Optimization

Zensar„s SAP/ERP Experience

Ramesh KodaliGlobal Head – SAP Practice

Agenda

Status of ERP Systems

Lessons learnt

Cost of ERP and approach to optimize

Case studies

Status of ERP Implementations

60% of the Fortune 1000 companies already have implemented ERP systems

70% of all companies that have installed an ERP system have yet to achieve any significant return on investment

75% of the implementations have failed to achieve the benefits and promises associated with successful ERP.

Additionally

Only 5 % of ERP implementations were successful in terms of finishing on time, within budget & without serious technical problems

A majority (58%) of companies did not manage to integrate their ERP solution with existing systems

23% of respondents said the integration procedure were unsuccessful

An overwhelming 71% did not attempt to incorporate their applications as integrations are “a complex, costly and a time consuming process”

Why companies fail to realize the full

potential of an ERP implementation

The following 8 are the most common reasons observed:

ERP software was installed to mirror a set of existing, often inadequate, business processes.

Organizations were ill-prepared to conform to “Best-in-Industry” practices

Management did not take the time to answer the question, “How do we want to run the business?”

Pre-implementation activities were not well understood and often not done

IT concentration may have been on technical wizardry and not focused on business excellence issues

Education and training was rushed and did not bridge the gap from software to the day-to-day requirements of the operation

Mapping of the old legacy systems to the new system was based on technology requirements, not users‟ current and future needs

Validation of data is not on time

How to optimize your ERP system

If you have implemented ERP and you are not realizing the return that you anticipated, you should consider optimizing your ERP system

When optimizing your ERP system, the focus must be aligning the application with your business processes and rules

During the ERP optimization process, provide answers to the following: Is ERP helping you

• to improve customer satisfaction?

• to contribute in increasing market share?

• to decrease your operational expenses?

• in reducing/optimizing your inventory?

• in reducing your order-to-delivery cycle time?

• to shorten your time-to-market?

• in achieving a competitive advantage?

• in giving information and metrics you need?

If your answer to any of these questions is “No”, then ERP Optimization should definitely be on your critical path.

Cost spread

Cost of ERP implementation centers around

People

Processes

Locations

Technology/Supporting Systems

Cost spread across ERP Life Cycle

Selection of right ERP package/Implementation Partner (5-10%)

Project Preparation (5%)

Requirement gathering/Blue Printing (20% - 25%)

Design (20% - 25%)

In-house guidance (10%)

Data Collection and validation (10%-15%)

Training (10%-15%)

Testing (10%-15%)

Post go-live support (10%-20%)

Zensar‟s optimized model

That’s where Zensar’s comes in with most optimized ERP- SAP

Zensar’s SAP ERP Solutions assure the customer

• Industry Vertical process expertise

• Reduced efforts during requirement gathering and design stage

• Reduces risk of successful delivery

• Path for ROI

• Stable post go-live scenario

Preconfigured Best Business processes

• 70-80% Processes ready to be deployed Reduced time of implementation

• Fixed time Post implementation Support

• Mature post implementation support

This is accomplished by way of offering SAP Industry Vertical solutions

Design Build Go-LiveSupport

Cut-over

Assess Risk

BlueprintProject

Prep

Pre-Configured Accelerators & Components

A risk mitigated approach in reducing TCO

Accelerated

preconfigured approach

Traditional & costly

approachEffort

andCosts

Time

Our preconfigured approach

Pre-Configured Accelerators & Components

Zensar’s and SAP Best Business Practices

Reduced Implementation Effort by 30% to 50% Reduced Project Duration by 30% to 50%

Engagement model – Advantages

BusinessBlueprint

Gap Closure and Testing

Classical Project

ProjectPreparation Realization

Go-LivePreparation

Project Timeline

Demo and Gap Analysis

Pre-configured ERP for you

ProjectPreparation

Deployment and Go-Live

Preconfigured Approach

SAP ERP Software (ECC 6.0)

Provided by SAP Best Practices- India Baseline

Best Practices- Industry specific

Provided By SAP

Zensar‟s

Preconfigured Industry

offering

Developed by Zensar- Pre-

configuration of scenarios-

up to 80-85%

Configuration

Done by Zensar-as per

requirements

(Only 15-20%)

Zensar‟s IVS leading to Optimized delivery

Life Sciences

Manufacturing

Med-devices

R&D

Textiles

Manufacturing

Merchandizing

Apparel

Food

Dairy

Fast foods

Beverages

Packaging

Retail

High fashion

Groceries

Engineering

Discrete

Component manufacturing

Case Study :GHCL

Best it implementation of the year 2007

PROJECT HIGHLIGHTS:

Year of Implementation:2007

Head Office: Delhi

Implementation: Vapi, Gujrat

Modules: FI, CO, MM, PP, QM, SD, EMS

Case Study – SANGAM Textile

Best IT implementations in 2008

PROJECT HIGHLIGHTS:

Year of Implementation:2007-2008

Head Office: Rajasthan ,India

Implementation:Bhilwara,Rajasthan

Modules: FI, CO, MM, PP, QM, SD

SUTLEJ : Best IT implementation in 2008

SUTLEJ runs SAP on ZENtex

PROJECT HIGHLIGHTS:

Year of Implementation:2007-2008

Head Office: Mumbai

Implementation: Jammu, Gujarat

Modules: FI, CO, MM, PP, QM, SD, EMS

The Only Indian Case – 2007 SAP ASUG Vienna

RPG-LS runs SAP on ZENlife

VARROC runs SAP on ZENmach

PROJECT HIGHLIGHTS:

Year of Implementation:2005

Head Office: Aurangabad

Implementation: Aurangabad

Modules: FI, CO, MM, PP, QM, SD, EMS

• 33 Manufacturing Plants

• Implementation time 12 Months

• Team Size – 12

• Solution – Zensar‟s Preconfigured

SAP Certified Solution

SULZER RUNS SAP on ZENmach

• 120 Locations Worlwide

• Implementation Duration 8

• Team Size – 12

• Solution – Zensar‟s Preconfigured

SAP Certified Solution - ZENMACH

PROJECT HIGHLIGHTS:

Year of Implementation:2009

Head Office: Mumbai

Implementation: New Mumbai

Modules: FI, CO, MM, PP, QM, SD, PS

World‟s leading Specialized centrifugal pumps

Customer Success – CorePharma

Companies that run SAP All-in-one Preconfigured

Solutions

Best it implementation of the year 2007Best it implementation of the year 2007

Indian Immunologicals

Jazeera Pharma - KSA

Conclusions

Key is on the selection processes

Insist on ERP vendor with pre-configured processes that suit your

industry (70% atleast)

Identify critical processes and ask the vendor for demo of these

processes

3-4 day scope study prior to contract signing to avoid cost overrun

Previous Industry experience of the vendor

A sample and demo run of the training program

Thank You