The Importance of User Skills Related to Enterprise System Implementation, Rollout, or Upgrade Success

IDC Research Study Results: The Importance of

User Skills Related to Enterprise System Implementation,

Rollout, or Upgrade Success

Cushing Anderson, IDC, Mal Poulin, ANCILE

SESSION CODE: 526

Focus on what really matters when implementing SAP software - the people. IDC research highlights the dependence on user adoption, skills, proficiency, and self-enablement. Whether you are implementing for the first time or rolling out SAP software again, it is always time to design, execute, and sustain strategies to enable the workforce to perform.

Discussion Points

The Importance of User Skills Related to Enterprise System Implementation, Rollout,

or Upgrade SuccessDynamic dimensions of success

4

Success is Dynamic

Success Requires Change “Successful” Software Adoption

• SaaS Δ’s Training

© IDC Visit us at IDC.com and follow us on Twitter: @IDC

5

Success and Change:Goal is Performance


6© IDC Visit us at IDC.com and follow us on Twitter: @IDC

Score: 0-2Score: 0-3



Score: 1-8 (first to 9 wins)

September 2012: Emirates Team NZ admits AC72 can foil

7

Daggerboard edgeRudder edge

Sail edgeTorpedo-shaped bulb


8


Score: 3-8 (first to 9 wins) Score: 5-8 (first to 9 wins)




NYT: The Cup is the oldest major trophy in sport...

Pushed into a postmodern place

USA Today:America’s Cup: Do you believe in miracles?

Reuters: The epic battle over the past few days has been a major vindication of the

vision of how to modernize the competition

SI.com: The staid old America's Cup can be an adrenalin rush

10

Success and Change:Frequency and Size of Change

Source: IDC Thought Leadership Practice Survey, December, 2014, n= varies by question from 1067 to 528% change is cumulative change over prior 3 years; Retention rate is cumulative retention rate over prior 3 years


% Sales Growth

% Growth of Fastest-growing products

% Employee productivity increase

% Profit Margin

% Revenue from new products

Employee Retention

Small Big

Frequent 24 21

Infrequent 20 17

Small Big

Frequent 27 24

Infrequent 26 24

Small Big

Frequent 22 16

Infrequent 17 15

Small Big

Frequent 30 23

Infrequent 25 20

Small Big

Frequent 25 20

Infrequent 19 16

Small Big

Frequent 66 58

Infrequent 71 81

11

Success and Change:Requires Communication


When ideas are communicated effectively, people follow and change.

— Nancy Duarte, Writer

You can have brilliant ideas, but if you can't get them across, your ideas won't get you anywhere.

— Lee Iacocca, American Businessman

12

Success and Change:Requires Communication

Source: Scott M. Cutlip Effective Public Relations (1953)*Me (just now)


Complete

Concise

Considerate

Concrete

Solves a problem All the information needed

Doesn’t need to be “short” But must be on point

Relevant Contextual to needs of receiver

Specific Timely

Continuous*

Consistent*

What’s Missing?

13

Success and Change:Characteristics of Communication

Change in Delivery Modalities Spending – Next 12 Months


Source: IDC's Learning Modality Survey, 2014

Mod

erat

e

Min

or

Neg

ligib

le

Neg

ligib

le

Min

or

Decrease Increase

Classroom-based ILT

"Disconnected" technology-based learning

Text-based training

Other

Formal on-the-job

Video

Simulations

Instructor-led e-learning

Self-paced e-learning

14

Source: Worldwide and U.S. IT Education and Training Services 2014–2018 Forecast Apr 2014 Doc #247795

Training will continue transition from c-ILT to elearning – but… Focus delivery methods on a) consumption and b) efficacy Too small to measure but important: EPSS & Simulations “Check List Manifesto” – The goal is performance

Success and Change:Characteristics of Communication


Classroom-based ILT

48.4%

eLearning content18.4%

CD-ROM15.0%

Virtual ILT12.6%

Text-based training3.7% Video/satellite video

1.9%

Total = $15,872m

Classroom-based ILT

42.7%eLearning content22.5%

CD-ROM14.0%

Virtual ILT15.9%

Text-based training2.6% Video/satellite video

1.9%

Total = $20,649m

2010 2018

15

Successful Software Adoption:Year of Adoption Success

Success only occurs when the effected employees are successfully trained: Skills equals performance.


2015 will be the year of “Adoption Success”

“Success” is defined by organizations maximizing the business utilization applications

Lead by SaaS firms, application vendors will measure utilization in a variety of ways and propose interventions to tiers of users.

• New users: Access and basic functions across all roles and levels.

• Basic users: Overcoming role and task specific obstacles, reducing mistakes, reducing time on tasks

• Proficient users: Using more advanced features.

Goal is for more rapid business results and greater product utilization. (reduce “shelf-ware”, increase renewal rate)

Challenges will be “what constitutes success” and creating interventions that are consumable and target the necessary skills/knowledge.

$

16

Source: Market Analysis Perspective: Worldwide and U.S. IT Education and Certification, 2014

Talent Drives Success



17


Plotting “ERP project success rate” shows what we would expect

Source: Market Analysis Perspective: Worldwide and U.S. IT Education and Certification, 2013

Impressive, But measures the wrong thing!


18

Successful Software Adoption:SaaS Δ’s Training

Deployment is faster, interface is [often] more intuitive, use is more pervasive (mobile/distributed)

Training – or skilling – is also changing

And the indicators of success are more easily available Usage data Performance results Etc.Allows the creation of "triggers“ to suggest remediation (or expanded use) based on actual performance


Approach: Number of users dictate approach

Content: Feature and function training (by role)

Content is static: custom content is created from scratch

Timing: Timed to be fully trained at "launch“

Lip service to “maintenance training”

Target: Identify and train "SMEs" based on roles

Success: Project milestones

Old Way

New Way

Approach: Learner convenience Drives Modality (Incremental users are irrelevant)

Content: Task/activity use case (by role)

Vendor content is customizable: contextual content can be built from known-good base

Timing: Minimally trained in advance (access and basic use)

Training continues (continuous) based on need

Target: Self-identified and self-directed experts

Success: Business results (enabled by software use)

19


0

20

40

60

80

100

5 10 20 30 40 50 60 70 80 90 100

(% of team certified)

(Ave

rage

per

form

ance

per

cent

ile)

Security functions (n = 652)

Database administration functions (n = 450)

Source: Market Analysis Perspective: Worldwide and U.S. IT Education and Certification, 2012 (IDC# 238475)

This is better


20


0

20

40

60

80

100

(Ave

rag

e p

erf

orm

an

ce p

erc

en

tile

)

(Time)

This is even better


Expert users

Frequent users

Occasional users

21


0

20

40

60

80

100

(Ave

rag

e p

erf

orm

an

ce p

erc

en

tile

)

(Time)

Leads to this

Introduction Training

Self-discovery

Intervention

Intervention

Jack’s performance

Jill’s performance


Intervention

0

20

40

60

80

100

(Ave

rag

e p

erf

orm

an

ce p

erc

en

tile

)

(Time)

Jack’s performance

Jill’s performance

22

Training Matters


23© IDC Visit us at IDC.com and follow us on Twitter: @IDC

Certified support staff with less than one years experience have more core domain knowledge than uncertified staff with 3 years of experience.

3 years

Certifying the skills of

IT staff members is the

single biggest

predictor of IT project

success

More often

Certified staff implement "single sign-on" access to authorized network resources

32%

Network resources managed by certified staff are in compliance with industry security policies for access control

10%

More oftenMore often

Certified Staff evaluate and respond to security attacks rapidly

26%

More often

80%of IT managers realize training is critical to project success

Well trained information security teams were:

10%more productive and account for

$70,000of annual improvement

Untrained users require

6xmore support than trained users

1 hourof training saves

5 hoursof lost productivity

less time spent by backup and recovery teams on fixing problems

21%Performance degrades by

over

4 years without ongoing

training.

25%

Train

ing

Cert

ificati

on

Source: various IDC reports, 2012-2014

The rate of change is accelerating

But, it will impact people

The impact of SaaS on training will show us the way: Consider

Triggers Mix of push and pull Complete, concise, considerate,

concrete (continuous & consistent)

KEY LEARNINGS

To improve is to change; to be perfect is to change often.

— Winston Churchill

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The Importance of User Skills Related to Enterprise System Implementation, Rollout, or Upgrade Success