A P R E C I S I O N S O L U T I O N S G R O U P W E B I N A R

Hybrid ERP

Finding the Right Set of Solutions for your Enterprise

Larry DubePresident

Dave Kravitt, CPIMExecutive

Precision Solutions Groupwww.PrecisionSG.com

(877) 677-5776

W E B I N A R : R i g h t E R P S o l u t i o n s f o r y o u r E n t e r p r i s e

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Hybrid ERP: Finding the Right Set of Solutions for Your Enterprise

Webinar ID: 147-047-227

W E B I N A R : R i g h t E R P S o l u t i o n s f o r y o u r E n t e r p r i s e

Agenda

• PSGi Introduction

• Trends we see in the ERP Marketplace

• Overview of ERP Strategic Options

• How to Select Optimal Strategy

• Q & A

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Who is PSGi?

• Founded in 2003 with 25+ years of experience

– ERP, SCM and other manufacturing applications

– IBM i platform and its predecessors

– Serving process manufacturing and distribution companies and all their enterprise software

• Software and Services for manufacturing companies

IBM i Managed ServicesEnterprise Application

Support & Services Consulting for

Operational Excellence

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A Sampling of our Customers

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Trends we see in the ERP Marketplace

• Companies hesitant to “rip and replace” or do “big bang” ERP– Long-term, multi-step roadmap to upgrade

– 2020 - < 20% will adopt mega-suite ERP strategy

– Implementations cost more and take longer

• M&A activity and ERP consolidation

• Growing Cloud ERP– Security no longer major concern

– Software without “immediate business impact” heading to the cloud

• Comeback of Best of Breed

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0%

10%

20%

30%

40%

50%

60%

70%

80%

Cost Overruns Project Late <50% Benefits

ERP Implementation Statistics

Source: Panorama Consulting Solutions

W E B I N A R : R i g h t E R P S o l u t i o n s f o r y o u r E n t e r p r i s e

Trends we see in the ERP Marketplace

• Companies hesitant to “rip and replace” or do “big bang” ERP– Long-term, multi-step roadmap to upgrade

– 2020 - < 20% will adopt mega-suite ERP strategy

– Implementations cost more and take longer

• M&A activity and ERP consolidation

• Growing Cloud ERP– Security no longer major concern

– Software without “immediate business impact” heading to the cloud

• Comeback of Best of Breed

W E B I N A R : R i g h t E R P S o l u t i o n s f o r y o u r E n t e r p r i s e

Considerations for Manufacturing IT Executives

ITExecutive

Boards want business growth

No disruption

Budget

Flat

New Technology Advantages

Simplifiy

Shadow

IT

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CIOs Eye Technological Advances

63%

Strategic Decision Making

85%

Customer Experience

84%

Operational Efficiency

W E B I N A R : R i g h t E R P S o l u t i o n s f o r y o u r E n t e r p r i s e

Considerations for Manufacturing IT Executives

ITExecutive

Boards want business growth

No disruption

Budget

Flat

New Technology Advantages

Simplifiy

Shadow

IT

W E B I N A R : R i g h t E R P S o l u t i o n s f o r y o u r E n t e r p r i s e

Key Considerations for ERP Evaluation

• Functionality

• Customizability

• Deployment Options

• Ease of Implementation

• Support

• Security

• Costs

• Ease of use

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ERP Deployment Options

Hybrid

ERP

Cloud ERP

On-Premise

ERP

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Cloud Solutions

• Barriers to cloud deployment falling– Cloud market 5 times growth of IT industry overall

• Gartner– 47% of enterprises will move core systems in 5 years

– SaaS implementations will grow to 45% in 2023

• Security is no longer as great a concern

• Less mature functionally but improving

• Market messages: Newer technologies bring agility and responsiveness to the enterprise

Cloud Solution

Providers:• Netsuite

• Epicor

• Ramco

• QAD

• Plex

• Workday

• many more

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• Quicker to provide user access

• Scalability

– Scale with the business

• Single ERP solution

– Less technically complex

– Tighter integration

• Updates applied by the vendor

• Backup and restore by vendor

• Work with single vendor

• Less control of IT infrastructure

DISADVANTAGESADVANTAGESCLOUDDEPLOY

W E B I N A R : R i g h t E R P S o l u t i o n s f o r y o u r E n t e r p r i s e

• Shorter Implementation– Less functionality

– Fewer options to test & select

– Less training

• User learn single solution

• May not support business requirements – Impact of some processes not

being supported

• Single system may not meet everyone’s needs– Can it provide competiveness?

• Difficult change management

Cloud ERP software today is less mature, less functional

DISADVANTAGESADVANTAGESCLOUD

IMPLEMENTFUNCTION

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• Configurable to a degree

• Customize if you must

• Not changing core product

• Platform-based additions

• System of differentiation

• How configurable

• May not be as easy as advertised

• Availability of platform skillsets

• Increased upfront time and cost

• Increased technical complexity

• Increased support costs

Do you need to enhance?

DISADVANTAGESADVANTAGESCLOUD

CUSTOMIZE

W E B I N A R : R i g h t E R P S o l u t i o n s f o r y o u r E n t e r p r i s e

On-Premise Solutions

• Majority of ERP purchases with great deal of momentum

• Mature solutions with functionality, name recognition & credibility

• “No one ever lost their job” mentality

23%

16%

16%9%

12%

26%

On-Premise Providers

SAP Oracle Infor

MS Dynamics Tier II Tier III

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• Customer full control of infra-structure and software – Hardware and O/S

– Applications

– Updates

– Disaster Recover

– Etc.

• Single ERP solution– Less technical complexity

– Tighter integration

• Work with single vendor

• May require new infra-structure to run new ERP

• Infrastructure cannot be easily changed with business changes

• Vendors platform changes for new functionality

DISADVANTAGESADVANTAGESON-PREMISE

DEPLOY

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• More software functionality and options to address more user requirements (“commodity”)

• User learn single solution

• Longer Implementation– More functionality to

implement

– Many options to test & select

– More training with all features

• Single system may not meet everyone’s needs

Mature functionality to address most business requirements

DISADVANTAGESADVANTAGESON-PREMISEIMPLEMENTFUNCTION

W E B I N A R : R i g h t E R P S o l u t i o n s f o r y o u r E n t e r p r i s e

• Better tools to tailor software to business processes; not vice versa– May enhance user buy-in

reducing change management

• May provide competitive advantages

• Localization may already exist

• Customization problematic for upgrades

• Higher IT costs to support

• Higher ongoing mainten-ance costs

• Increases technical complexity

• Increased risk of project being late and costing more

Core functionality changes possible

DISADVANTAGESADVANTAGESON-PREMISECUSTOMIZE

W E B I N A R : R i g h t E R P S o l u t i o n s f o r y o u r E n t e r p r i s e

• Dispelling myths– “In a public cloud others can

see my data”

– “I will lose control or ownership of my data”

• Better security solutions than individual companies– Investment in tools

– Focused, skilled resources

• “Internet Age” applications have focus on security

ON-PREMISESCLOUD SECURITY

• Security controlled by IT Staff (pro or con)

• Mature applications architected before Internet and today’s security focus

• Vulnerabilities exist

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Costs

• Periodic operating expense item (OPEX)

• Subscription fee

• Minimal infrastructure cost

• Includes licenses & support

• Includes backup and redundancy

• Capital budget item (CAPEX)

• Major infrastructure costs

• Software licenses

• Typically higher implementation costs

• Annual Maintenance fee

ON-PREMISECLOUD COST

W E B I N A R : R i g h t E R P S o l u t i o n s f o r y o u r E n t e r p r i s e

Hybrid ERP Solutions

• Best of both worlds approach– Balance of on-premises and cloud services

• Many current On-Premise ERP core functionality are rock solid– Hardware fully supported addressing modern requirements?

– Underlying software and database still fully supported?

– Resources available to fully support the ERP application?

• Add cloud-based “best-of-breed” point solutions – Complementary solutions to add innovation and agility

– Architected with integration and security mind

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• No new infrastructure

• Far easier than entire ERP

• Less risky than entire ERP

• Greater technical and integration complexity

• Potential data issues between systems

• More than one vendor

DISADVANTAGESADVANTAGESHYBRIDDEPLOY

W E B I N A R : R i g h t E R P S o l u t i o n s f o r y o u r E n t e r p r i s e

• Core functionality addressed

• Desired functionality obtained

• Less for users to learn

• Change Management easier

• May need to re-implement some ERP functionality

• Look & Feel may be different

DISADVANTAGESADVANTAGES

HYBRIDIMPLEMENTFUNCTION

W E B I N A R : R i g h t E R P S o l u t i o n s f o r y o u r E n t e r p r i s e

• Cloud application security by cloud and application provider

• Newer cloud applications built in Internet age with major security focus

• Mature ERP applications architected before Internet and today’s security focus. May still be vulnerable

• Need to implement security best practices

DISADVANTAGESADVANTAGESHYBRID

SECURITY

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Best of Breed Cloud Application Areas

• Fax

• Financials

• CRM

• Human Resources

• Supply Chain

• Logistics

• Expense Reporting

• Talent Acquisition

• Big Data & Analytics

• Transportation

• WMS

• Quality Management

• Others

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QuadraDocV

• Eliminate On-Premise

• Maintain full control

• Reduce costs

• Ensure full compliance

• High Availability

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Operational SpecXchange

SpecXchange

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© Vecco International 2016

Value Chain Req Planning

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Costs

• Best-of-breed functionality addresses defined needs

• Provide competitive differentiation

• Lower upfront cost

• Simpler change management

• Less technically complex

• Tighter integration

• Consistency

• Deal with single vendor

SINGLE SOLUTION HYBRID Pros

W E B I N A R : R i g h t E R P S o l u t i o n s f o r y o u r E n t e r p r i s e

What ERP Strategy is Right for You?

• Small to mid-size company with simple business processes

• Want to implement quicklyCloud ERP

• Mid- to large size company with more complex business processes

• Multi-national companies that need localization

• Business culture of working with large, single vendor

On-Premise ERP

• Larger organizations likely already have hybrid environment

• Want to extend existing success with lower overall risk and cost

• Majority of companies we work with - perfect fit for Hybrid ERPHybrid ERP

A P R E C I S I O N S O L U T I O N S G R O U P W E B I N A R

Questions and Answers

Larry DubePresidentLarry.Dube@PrecisionSG.com

Dave Kravitt, CPIMExecutive

Dave.Kravitt@PrecisionSG.com

Precision Solutions Groupwww.PrecisionSG.com

(877) 677-5776