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Aspire Advisory ERP Selection Process Start with Strategy
Aspire Advisory ERP Selection Process
Start with Strategy
WE ARE LIVING IN A DIFFERENT ERP ERA
Inventory &
Mgmt. Control 1960’s
MRP Prod Sched
1970’s
MRP II Manu Proc.
1990’s
ERP 2000’s
Extended ERP/DDMRP
Today
Why Does Gartner Say – “75% of ERP Project Fail” T
rad
e-O
ff
1. Tradeoff between speed, cost and business results
2. Unrealistic expectations
3. Implementation – Not executed with Change
Management
4. “Best practices” = watered down competitive
advantage
“Getting to the Decision”
Think Strategic Business Build on Close Competitive EBITA
Plans Strengths Key Gaps Advantage Impact
Key Drivers Hard to Meet Key Functions Deployment
Requirements (Modules) Considerations
Generate Short List Research RFI & Align
Based Response Culture
Demos Focus on Align
Drivers Culture
Select
&
Negotiate
“Getting to the Decision”
Think Strategic Business Build on Close Competitive EBITA
Plans Strengths Key Gaps Advantage Impact
Key Drivers Hard to Meet Key Functions Deployment
Requirements (Modules) Considerations
Generate Short List Research RFI & Align
Based Response Culture
Demos Focus on Align
Drivers Culture
Select
&
Negotiate
Strategic Drivers
1. New Markets – Domestically, US, International focused…
2. New Products – New products or product lines that require new functionality
3. Acquisitions in the Future – Horizonal or vertical integration
4. Customer Focus – Improve customer service and satisfaction
5. Cost Management – Improve margins across the organization – efficiency/cost control
6. Innovation – Support Innovation and R&D – able to adapt quickly
7. Internal – Create a performance based culture/productivity/cross functional work teams/etc.
Differentiators in Your Business – What is your Magic
Strengths, GAPS and Competitive Advantages
Putting it All Together – A Simple Model
What is the companies of the Vision
To be the premier frozen food
provider through great customer service and quality
of our product
Vision
How will an ERP solution support the strategy • Develop 360 view of customer • Improve production times and through-put • Simplify information processes • Understand customers and margins
Technology Strategy
What are the tactics required to deliver on strategy • Integrated CRM solution with ERP • MRP and Available to Promise • Improved tools and technology for process • Analytics tied to CRM and ERP
Execution
Simple Business Case
Where are the BIG Opportunities for Savings
Business Case at the Various Levels
Initial
Stages
RFI
Creation
Solution
Selection
“Getting to the Decision”
Think Strategic Business Build on Close Competitive EBITA
Plans Strengths Key Gaps Advantage Impact
Key Drivers Hard to Meet Key Functions Deployment
Requirements (Modules) Considerations
Generate Short List Research RFI & Align
Based Response Culture
Demos Focus on Align
Drivers Culture
Select
&
Negotiate
Key Drivers
Requirements Gathering - Create a map of current business processes to identify bottlenecks in Efficiency and Shortcomings
- Identify key business challenges you aim to solve with the new ERP system
- Consult each functional department to discuss business challenges and requirements
- Create a Short List of Drivers < 20 to create focus for the RFI
- Document requirements for the new system and assign priority values to each – NOT a list of 500
- Take final requirements to end user groups to gather feedback and adjust
What Key Functions/Modules Do I Include?
Phase 1 Phase 2 Phase 3+
Deployment Models
Things to Consider - Is Access Important – Any Computer/Any Time
- Organizations Ability to Support Technology – Cost and Skill consideration
- Perpetual License or SAAS – Short vs Long Term Cost
- Pricing & Financing Options – Build out a 4-5 Year TCO
- Flexibility in ERP Organization – i.e. Rent to Own (i.e. Financing with ERP Provider)
“Getting to the Decision”
Think Strategic Business Build on Close Competitive EBITA
Plans Strengths Key Gaps Advantage Impact
Key Drivers Hard to Meet Key Functions Deployment
Requirements (Modules) Considerations
Generate Short List Research RFI & Align
Based Response Culture
Demos Focus on Business
Drivers Scenarios
Select
&
Negotiate
Research, Research, Research
Other Considerations - Keep it simple - Scripts/High Level Flows - Consider Professional Service Model
- Core Requirements - Stay away from Shiny obj - Pricing & Deployment Models
- Team Effort - Squeaky Wheel Syndrome - Long-term relationship
RFI and Response – High Level
Selecting Participating Organizations – Align Culture
Other Considerations - Local Development/Local Support
- Little Fish in Big Pond or Big Fish in Little Pond
- Alignment of Partner Organization with Yours
- Partner Trending Up or Down
- Product Roadmap and Vision
- Organizational Culture and Flexibility
- Vendor to MEET Management…NO GATE KEEPING
“Getting to the Decision”
Think Strategic Business Build on Close Competitive EBITA
Plans Strengths Key Gaps Advantage Impact
Key Drivers Hard to Meet Key Functions Deployment
Requirements (Modules) Considerations
Generate Short List Research RFI & Align
Based Response Culture
Demos Focus on Business
Drivers Scenarios
Select
&
Negotiate
Demonstration – Business Drivers Focused
Things to Consider - Build your scoring around your business drivers – Keep your eye on the prize
- Obtain understanding of vendors ability to meet business driver requirements
- If they can not meet it “out of the box” – what are the work arounds and cost of the solution
- Obtain assurance of ability to meet business need if unsure
Demonstration – Business Scenarios
Things to Consider - Provide High level view of critical processes
- Inform vendor of key business challenge
- Score based on ability to overcome business challenge
- Stay away from shiny objects – vendors are smooth
“Getting to the Decision”
Think Strategic Business Build on Close Competitive EBITA
Plans Strengths Key Gaps Advantage Impact
Key Drivers Hard to Meet Key Functions Deployment
Requirements (Modules) Considerations
Generate Short List Research RFI & Align
Based Response Culture
Demos Focus on Business
Drivers Scenarios
Select
&
Negotiate
Due Diligence & References
Things to Consider - Keep a Backup while Negotiating
- Vendor is motivated to close the deal
- Define selection criteria outside of Requirements and
Business Process - What are you looking for in a Partner
- Reference Sites are Interesting but usually not informative
- Use Social Media for references
- Professional Services Model – on-site/local, or…
Things to Consider - Project Management IS NOT Change Management
- Ask vendor about support of this component – Help
files, training and processes
- Document Processes – Org or Vendor?
- How will your workforce embrace and adapt
- User adoption is critical
Select and Negotiate
Things to Consider - DATA Migration – Don’t Make it difficult on yourselves
- Pricing Model – User/Concurrent
- Deployment – SAAS, Perpetual or Rent to own
- Financing Options or deferred Payments
- Professional Services – PM, Key Resources in Contract,….
- Training – In-depth review – understand the process – part of
Change Management
- Add-ons – How are they integrated
Wrap-Up
- Your Magic/Key Business Processes
- Avoid Shiny Objects
- Select the “Right” Vendor
- Professional Services Model is Key
