ERP Assessment, Selection, and Planning

1

• ERP Assessment, Selection, and Planning
• SAMPLE APPROACH

2
Realizing ERP Benefits and ROIFocus on ERP ROI
and Benefits Realization
Activities During Software Evaluation and Project
Planning Should Focus on Optimizing ERP ROI

• Business Strategy Alignment
• Strategy Definition / Articulation
• Performance Measure Alignment with Strategy

• Performance Management
• Business Case / ROI Definition
• Operational Measures
• Benchmarks and Perf. Targets
• Manage Measures to Bus. Case

• Business Processes
• Process Improvement Design
• Process Measures Value-Add
• Staff / FTE Optimization
• Six-Sigma Quality

• Business Optimization
• Benefits Realization

• Organizational Change
• Organizational Readiness
• Organization Design
• Job and Work Design
• Training Communications

• IT / Architecture
• Vendor Selection
• Project / Program Management
• Solution Architecture
• Reporting Business Analytics

3
Sample Project Plan
Focus on High-Value Activities Designed to
Establish a Roadmap for a Successful ERP Project
4
Task 0Project Mobilization and Planning
Start Phase I Initial Assessment

• Define Key Project Resources
• Core Team
• Subject-Matter Experts
• Management and Other Stakeholders
• Finalize Project Plan
• Milestones and Resource Allocation
• Conduct Project Kickoff Meeting with Key
  Stakeholders and Participants
• Review Existing Company Documentation

5
Task 1Define Business Requirements

• Clarify/Identify Strategic Drivers of ERP
• Document High-level Business Processes
• By major function e.g. Manufacturing, Finance,
  Maintenance, Supply Chain, etc.
• Document Current System Architecture
• Define and Prioritize Business Requirements
• Define and Prioritize Business Pain Points and
  Opportunities for Improvement
• Identify Process KPIs and Business Benefits

6
Task 2Assess Current IT Infrastructure

• Review Platform Requirements
• Assess Network Infrastructure
• Assess Current System Architecture
• Assess Handheld Technology, if applicable
• Determine Future Requirements
• Develop Skill-set Requirements

7
Task 3Evaluate Potential Vendors

• Identify Vendor Assessment List (5-6 Vendors)
• Create RFI and Compile Responses
• Identify Vendor Strengths and Weaknesses
• Determine Vendor Assessment Criteria
• Gather Vendor Assessment Results
• Complete Vendor Scorecards
• Milestone Create Short-List of Vendors to
  Evaluate in More Detail

8
Task 4Assess Software Functionality
Start Phase II Short-List Evals

• Schedule Vendor Demonstrations
• Create Vendor Demo Scripts
• Create User Evaluations
• Facilitate Vendor User Demonstrations
• Compile User Evaluation Results
• Create Final Vendor Scorecard
• Distribute RFPs to Vendors

9
Task 5Assess Software Technology
Review Key Technology Capabilities of Each Vendor

• Architecture
• Skill-set Requirements
• Scalability
• Performance
• Data Integrity
• Interface
• Database
• Data Migration
• Approximate Duration 3-4 Weeks

• Security
• GUI Interface
• Software Management
• Maintenance Support
• Upgrades
• Customization
• Training
• Handheld Interfaces

10
Task 6Facilitate Vendor Selection

• Review RFP Responses and Follow-up, As Needed
• Review Functional and Technical Scorecards
• Decision Point Do We Move Forward with ERP?
• Make Vendor Recommendations
• Facilitate Preliminary Software Decision
• Assist in Vendor Negotiations
• Milestone Final Vendor Selection

11
Task 7Develop Implementation Strategy
Start Phase III ERP Planning

• Determine Rollout Strategy and Plan
• Big Bang vs. Phased, Timing, etc.
• Identify Project Resource Requirements
• Create Architecture / Interface Plan
• Create Final Project Budget

12
Task 8Develop Final Business Case

• Refine Estimated Software Costs
• Identify Technical Costs
• Hidden Costs
• Customization
• Quantify Key Business Benefits
• Document Opportunities for Staff Optimization
• Develop Projected ROI, Payback, etc.
• Create Benefits Realization / KPI Plan
• Milestone Final Project Approval Project
  Kickoff

13
Task 9Organizational Change Mgmt

• Project Communications with Employees
• Conduct Organizational Readiness Assessment to
  Identify Pockets of Resistance
• Develop Business Process Competencies
• Assess Employee Skill-Sets
• Identify Staff Optimization Opportunities
• Facilitate Final Project Approval

14
Key Project Deliverables

• Documented Business Processes, Requirements, and
  KPIs
• Vendor Demo Scripts
• User Evaluation Forms and Results
• Vendor Scorecards
• Business Case Justification
• System Architecture / Interface Document
• Implementation Project / Resource Plan
• Benefits Realization Plan