SAP End User Competency

1
SAP End User Competency

• They Drive the Business Processes That Drive Your
  Business Performance

2
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

3
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

4
ERP Clients Look into the Mirror
  Perceived Responsibility for Problems with ERP Implementation Perceived Responsibility for Problems with ERP Implementation Perceived Responsibility for Problems with ERP Implementation Perceived Responsibility for Problems with ERP Implementation Perceived Responsibility for Problems with ERP Implementation
  Number Answering Our Own Organization Software 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 Q36.Who do you believe is most responsible for the problems you experienced with your base ERP Q36.Who do you believe is most responsible for the problems you experienced with your base ERP Q36.Who do you believe is most responsible for the problems you experienced with your base ERP Q36.Who do you believe is most responsible for the problems you experienced with your base ERP Q36.Who do you believe is most responsible for the problems you experienced with your base ERP
5
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?

6
End User Attrition
Source U.S. Department of Labor
7
End User Scenario
Year 1
Year 0
Year 2
8
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
Planning View the ERP wedding
Client Reality the ERP marriage
15-22 Years
1-3 Years
Investment scope
9
ERP Issues
Executive Reporting
End User Competency
Functional Integration
Application Mtc Costs
Financial Integration
Business/IT Alignment
Architecture
Other
-20
-10
0/Midpoint
10
20
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
10
Dedication to User Training
Source META Group TCO of ERP, 2003
11
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?

12
76 of Firms Polled Face User Competency
Challenges
Highly Competent
11
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.
Competent
Our end users fully understand the software and
are able to gain full benefit of its
functionality.
13
64
Failing
12
Sub-Standard
Our end users are struggling to make use of the
software
Our end users have a sufficient understanding of
the software but are not gaining full benefit of
its functionality
How competent are your end users?
13
Refresher and periodic re-training lead directly
to competency gains
Highly Competent Competent
Sub-standard Failing
6
13
22
56
37
65
All end users receive refresher training on a
regular basis
Relevant end users receive training whenever
there are major system changes or upgrades
No training provided
14
SAP Training Resource

• SAP
• Dedicated third-party SAP trainers
• Super users
• SIs
• LMS software
• Simulation software

15
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

16
Worst practices

• One-time end user training
• Ongoing user trains the user
• No outside training resource
• No competency measurement
• No simulation

17
For post-implementation training support,
successful firms
engage dedicated outside trainers, not
independent consultants
Highly Competent Competent
Sub-standard Failing
Instructor Mix

• ERP vendor-supplied
• Third-party ERP training
• Third-party systems integrator
• Independent consultant
• Internal staff

20 10 15 5 90
17 13 5 24 78
35
45
18
The ROI of End User Competency

• End user functions drive the business processes
  that drive business performance
• Alice in Wonderland

19
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 every bit as much as does the software
20
Break sponsored by
21
Audience Response
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