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Insights byV. Subramaniam, Director - IT and CIO OtisElevator Company

Captured by

Anagha DeshpandeAnkita Jain

Khyati Kabra

Mandar Nimgaonkar

Nishith Gandhi

Vinayak Harer

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Agenda Insights provided by "V. Subramaniam, Director - IT and

CIO" Otis Elevator Company

Organization - Over View

ERP Journey

Organization Need

ERP and Package evaluation processes

ERP Implementation

Post ERP Key Learnings from Discussions

Conclusion and remarks

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Insights provided by "V. Subramaniam,Director - IT and CIO" Otis Elevator Company

Enterprise Relationship Programme ERP Implementation not a project, but a business

initiative because it is a continuous process

People

System

VISION

Process

ERP implementationis always a challengein an Organizationdue to Change

related to Processes,People and Systems.ERP is a GameChanger for Org.

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Organization Overview

OTIS Worlds largest company in the manufacture, installation and service of

elevators, escalators and moving walkways

ERP implemented to be Integrate the processes and systems andaligning people, further strengthen controls leading to compliance,improved response time and reduced cycle timeto be a Agile

Organization

Marico Marico is a leading Indian Group in Consumer Products & Services in

the Global Beauty and Wellness space

Implemented ERP in 2000 for detailed planning of its complexdistribution system

Earlier system in Marico INGRESS

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ERP Journey

Organization Need Team Structure

ERP Evaluation

ERP Implementation

Beyond ERP

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Organization Need

Global Competition Reach

Direct

Virtual Scalability Flexibility / Dynamic Differentiate

Edge Corporate Controls Data Integrity

Old System has lived its life, its not badThen comes change,

which is the Game changer

Growth

Leverage Opportunity

AGILE

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Team Structure

SteeringTeam

OrganizationTeam Lead

Business

Consultant

IT FinanceSales and

DistributionFactory

Technical

Consultants

Partner

Sponsor(CEO)

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Internal Team Selection

Parameters for selection

Min 5 years experience withcompany

Good performer

Adaptable to change

Knows all company processes Credibility

Firm, assertive Probing skills

Selection Process

Nominate People

Review / Assessment

Issue Letter

Orientation program by

Sponsor company vision External Partner Package

evaluation methodology Assign roles and responsibilities

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ERP Evaluation Timeline 6 months By top management

Initially, In House with external partnership

CV evaluation and informal interview for external partner

selection External partner should have

Domain expertise ERP Knowledge

Experience of technologies, processes

Managerial expertise Brand

Different evaluation and implementation partners

RFP -> Presentation by 3-4 partners identified after due diligence

2 were shortlisted for price negotiation

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Conference Room Discussion (CRD)

Process

People

CRD

System

Internal walkthrough As Is Processes

Assess the current process

Value stream process mapping

Principle of lean management

Process mapped end to end

Value chain

Mapping of information flow inprocess

What, Who, When, How, Why ateach process step

Identifying requirements, gaps andpain areas

Automation Level

Strength and Weakness of process

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Conference Room Discussion (..contd)

External walkthrough Through supplier cell

Educate supplier to align their processesto companys

People

Inform Involvement

Interact

Perform

Current System Architecture

Current Scenarios

Current Limitations

Interface required

Network Infrastructure

Who manages system

Process

People

CRD

System

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Deep Dive

3 Package Vendors SAP

JDE

MFG Pro

Walkthrough for each scenario (not just a demo)

Deep Dive

Operations

Daily Monthly

Information need

User profiling

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Outcome

Best Fit parameters decide package to be selected Fit Ratio

Gap Work around

Customization

Development not possible Future

Negotiate and conduct due diligence

Requirement (Scoping) document signed by top

management User profiling who, what, how, why

Summary Document

Recommendation

Criticality Critical to

have Must to have Nice to have

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Implementation Partner Selection

Implementation Partner selection 3-6 months Siemens Systems Limited + SAP (Marico)

L&T Info

Due diligence

Implemented JD Edwards before? Which cycle? Have people?

How many people all of JD? What level?

Walkthrough methodology of each partner

Called customer for reference How was management?

Senior Management involved

Attrition rate?

Flexibility of company costs and scope change

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Implementation Partner Selection (..contd)

Prepare Matrix card

Finalize implementation company and team

Negotiate price

Implementation Post Implementation

Proposal -> Scope of work

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ERP Implementation

Project Governance Structure model

Approves deviations

Interface for Project Team

Security Matrix access rights

Data Migration At every milestone of the project, there are reviews by Internal

Control / Audit Team

Internal and external audit

Implementation Steps

Re-requirement freezing CRD / Process walkthrough

Configuration and setups

System walkthrough / CRP (Pilot)

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Implementation Steps (contd..)

User Acceptance Training UAT Readiness-

Assess if end users are ready for training

People, Process, Data

Test Cases Scenarios: Strategic, Operational, Critical, Ad-hoc,Month end

UAT

Integrated UAT

Simulation

1 month Sign off

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Implementation steps (contd..)

Training Change Management

Refresher Training

About JDE

Guidelines for usage

Top management training

Supplier Training

Training : parallel activity

Awareness Training, Refresher Trainings

Monitored training effectiveness

Created Power users

Created champions for multiple refresher trainings for users

Conference RoomTraining

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Data Migration Started after freezing of requirements

Proceeds parallel to other implementation activities

Data might be

Fully Available

Not Available

Partially Available Steps in Migration

For all data, comprehensive controls during migration

Identify Verify Migrate Validate Review Signoff

LegacyJD

Edwards

ControlReport Match ControlReport

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Readiness to go Live

Preparation started with 3 months before going live Dashboard created to show status of various milestones

2 types of issues tracked through dashboard Turn back Issue within a milestone

Escape Issue after a milestone has passed

Root cause analysis for each Turn back and Escape

RequirementInfrastructure

ReadinessUAT Training

DataMigration

Security InterfaceChange

ManagementReview

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Go Live Issues

Go Live Issues

Information ERP

Configuration Data

Peopleunderstanding

issues

Post Go LiveTurnaround Strategy:

Checks have to be madeon:

Daily operationsMonth end figuresMIS needs

Success is measured on the basis of first month closing

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Final Steps New Interface for shifting to JDE from Legacy System

Different team for interface

Parallel activity; starts after requirement freezing

Infrastructure readiness

LAN, WAN, PC upgraded and kept ready

Load Injector tool used for simulation of load Support model needs to be in place

Transition and post go live training conducted

DRP/Contingency plan Simulation testing

Post Go Live training Cutover Big Bang Approach (3-4 days)

Final Data Verification

Final testing

Final migrate Switch off old system; switch to ERP

Test in production after migration before Final dive

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Ensuring Quality at each step Capturing turn backs at every mile stone(Requirements, Testing,

Training and feedback, Infra readiness, Data Migration)

Applying quality management principles to do the root causeanalysis and mistake proof the solution to eliminate escapes

when we roll out the final product

Quality is a continual process and journey not an end todestination

For example:

Data migration: What data is migrated, how is the same verified,control checks and totals before and after migration

Interface: When a data is being pushed from one system to other,how we verify through control checks and totals and reviews

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ERP Modules Deployed

ERP 8.0 JD Edwards Finance

Account Receivables

Account Payable

AL FA

Job Costing

Control Billing

Sales and Distribution Inventory

SoP

RRO

AOV

India Localization VAT

TDS

Manufacturing still

implementing

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Marico Otis Infos

Ingress-Financial,Manufacturing, S&D

Appx/Unix & Vb based System Unify/Unix

Legacy, non-integrated, Limited

Functionality and Features

Legacy, non-integrated, Limited

Functionality and Features

Legacy, non-integrated, Limited

Functionality and Features

Powerusers then turn intochampions

Powerusers then turn intochampions

Powerusers then turn intochampions

Went live in 2002 Went live in 2009 Went live in 1997

NA Common ModelSingle Instance for India

NA

Highly specific No customization, processeswere fine tuned and hadworkarounds wherein it wasquite specific. On IndiaLocalization they had a Boltonmodule to address tax relatedrequirements integrated to JDE

No customization to the core,processes were fine tuned andhad workarounds wherein it wasquite specific.ERP was a like aconfigurator, where in one canconfigure based on itsrequirements.ERP is based on Oracle 7i fromInfopower, Canada

All the modules implemented atone go followed by BIW

Its a strategic decision toimplement Finance, SNDmodules first and followed byMfg Modules

Big Bang approach

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Major Learnings

Never assume anything Plan for contingencies

Always have a defined turnaround strategy

Identify Risks -> Mitigation techniques -> Turnaround strategy

Gather confidence of people at an early stage, do not let them panic

Post Go Live: Communication is extremely important

A fixed price project eliminates cost issues

Be careful of

Over commitment

Attrition Stress

Issues arising while data migration

Security

Coordination and cooperation is a must

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Major Benefits from ERP

Increased operational efficiency Reduced cycle time

Global integration and view

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ERP is a complex projectit has to be

experienced