Acquisition of ERP · So what is ERP after all? l Packaged software –off the shelf ... company...
Transcript of Acquisition of ERP · So what is ERP after all? l Packaged software –off the shelf ... company...
![Page 1: Acquisition of ERP · So what is ERP after all? l Packaged software –off the shelf ... company bankrupted by failed Sap implementation l Hershey’s unable to ship candy for Halloween](https://reader033.fdocuments.net/reader033/viewer/2022042102/5e7f4af50f8f7803cb71b26c/html5/thumbnails/1.jpg)
Acquisition of ERP
December 4, 2007
![Page 2: Acquisition of ERP · So what is ERP after all? l Packaged software –off the shelf ... company bankrupted by failed Sap implementation l Hershey’s unable to ship candy for Halloween](https://reader033.fdocuments.net/reader033/viewer/2022042102/5e7f4af50f8f7803cb71b26c/html5/thumbnails/2.jpg)
ERP Defined
![Page 3: Acquisition of ERP · So what is ERP after all? l Packaged software –off the shelf ... company bankrupted by failed Sap implementation l Hershey’s unable to ship candy for Halloween](https://reader033.fdocuments.net/reader033/viewer/2022042102/5e7f4af50f8f7803cb71b26c/html5/thumbnails/3.jpg)
ERP Defined – cont.
![Page 4: Acquisition of ERP · So what is ERP after all? l Packaged software –off the shelf ... company bankrupted by failed Sap implementation l Hershey’s unable to ship candy for Halloween](https://reader033.fdocuments.net/reader033/viewer/2022042102/5e7f4af50f8f7803cb71b26c/html5/thumbnails/4.jpg)
ERP Defined – cont.
![Page 5: Acquisition of ERP · So what is ERP after all? l Packaged software –off the shelf ... company bankrupted by failed Sap implementation l Hershey’s unable to ship candy for Halloween](https://reader033.fdocuments.net/reader033/viewer/2022042102/5e7f4af50f8f7803cb71b26c/html5/thumbnails/5.jpg)
So what is ERP after all?
l Packaged software – off the shelfl Integrated modules – no programmingl Configuration, not customizationl Business process focusl Unified databasel Disciplines
l Financel Supply Chainl CRMl HR
![Page 6: Acquisition of ERP · So what is ERP after all? l Packaged software –off the shelf ... company bankrupted by failed Sap implementation l Hershey’s unable to ship candy for Halloween](https://reader033.fdocuments.net/reader033/viewer/2022042102/5e7f4af50f8f7803cb71b26c/html5/thumbnails/6.jpg)
ERP Conceptual Operation
GeneralLedger
Fixed Assets
Purchasing Cash Management
Accounts Payable
Accounts Receivable
Single-Point Data Entry
External Systems
Printed Reports
Online Queries, Spreadsheets,
Web Sites
![Page 7: Acquisition of ERP · So what is ERP after all? l Packaged software –off the shelf ... company bankrupted by failed Sap implementation l Hershey’s unable to ship candy for Halloween](https://reader033.fdocuments.net/reader033/viewer/2022042102/5e7f4af50f8f7803cb71b26c/html5/thumbnails/7.jpg)
ERP as planned
![Page 8: Acquisition of ERP · So what is ERP after all? l Packaged software –off the shelf ... company bankrupted by failed Sap implementation l Hershey’s unable to ship candy for Halloween](https://reader033.fdocuments.net/reader033/viewer/2022042102/5e7f4af50f8f7803cb71b26c/html5/thumbnails/8.jpg)
ERP as implemented
![Page 9: Acquisition of ERP · So what is ERP after all? l Packaged software –off the shelf ... company bankrupted by failed Sap implementation l Hershey’s unable to ship candy for Halloween](https://reader033.fdocuments.net/reader033/viewer/2022042102/5e7f4af50f8f7803cb71b26c/html5/thumbnails/9.jpg)
Or worse…..
![Page 10: Acquisition of ERP · So what is ERP after all? l Packaged software –off the shelf ... company bankrupted by failed Sap implementation l Hershey’s unable to ship candy for Halloween](https://reader033.fdocuments.net/reader033/viewer/2022042102/5e7f4af50f8f7803cb71b26c/html5/thumbnails/10.jpg)
Headlines……
l FoxMeyer Corp, $5 Billion Drug company bankrupted by failed Sap implementation
l Hershey’s unable to ship candy for Halloween after supply chain implementation
![Page 11: Acquisition of ERP · So what is ERP after all? l Packaged software –off the shelf ... company bankrupted by failed Sap implementation l Hershey’s unable to ship candy for Halloween](https://reader033.fdocuments.net/reader033/viewer/2022042102/5e7f4af50f8f7803cb71b26c/html5/thumbnails/11.jpg)
Why do ERP implementations fail?
l What is failure?l Budget/Schedule?l Scope?l Process?l Outcome?
l What is success?l Outcomel Budget/Schedule?
![Page 12: Acquisition of ERP · So what is ERP after all? l Packaged software –off the shelf ... company bankrupted by failed Sap implementation l Hershey’s unable to ship candy for Halloween](https://reader033.fdocuments.net/reader033/viewer/2022042102/5e7f4af50f8f7803cb71b26c/html5/thumbnails/12.jpg)
Official Primary Reasons for Failure
l Lack of disciplined processesl Lack of effective human capital
management
![Page 13: Acquisition of ERP · So what is ERP after all? l Packaged software –off the shelf ... company bankrupted by failed Sap implementation l Hershey’s unable to ship candy for Halloween](https://reader033.fdocuments.net/reader033/viewer/2022042102/5e7f4af50f8f7803cb71b26c/html5/thumbnails/13.jpg)
Real Reason for Failure
l People
![Page 14: Acquisition of ERP · So what is ERP after all? l Packaged software –off the shelf ... company bankrupted by failed Sap implementation l Hershey’s unable to ship candy for Halloween](https://reader033.fdocuments.net/reader033/viewer/2022042102/5e7f4af50f8f7803cb71b26c/html5/thumbnails/14.jpg)
Real Reason for Failure – More specific
l Project Management
![Page 15: Acquisition of ERP · So what is ERP after all? l Packaged software –off the shelf ... company bankrupted by failed Sap implementation l Hershey’s unable to ship candy for Halloween](https://reader033.fdocuments.net/reader033/viewer/2022042102/5e7f4af50f8f7803cb71b26c/html5/thumbnails/15.jpg)
Disciplined Processes
l Project Planning and Managementl Requirements Definition and Managementl Configuration Managementl Testingl Data Conversionl Risk Managementl Training and Change Managementl Quality Assurancel Post Implementation Evaluation and Support
![Page 16: Acquisition of ERP · So what is ERP after all? l Packaged software –off the shelf ... company bankrupted by failed Sap implementation l Hershey’s unable to ship candy for Halloween](https://reader033.fdocuments.net/reader033/viewer/2022042102/5e7f4af50f8f7803cb71b26c/html5/thumbnails/16.jpg)
Human Capital Management
l Strategic Workforce Planning – aligning HR with concept of operations
l Human Resources – role-based trainingl Change Management
l Alerting staff to changes to comel Ensuring staff they will have the tools they need to be
successful
![Page 17: Acquisition of ERP · So what is ERP after all? l Packaged software –off the shelf ... company bankrupted by failed Sap implementation l Hershey’s unable to ship candy for Halloween](https://reader033.fdocuments.net/reader033/viewer/2022042102/5e7f4af50f8f7803cb71b26c/html5/thumbnails/17.jpg)
Implementation starts with Acquisition
l Disciplined processesl Human capital managementl Organizational commitment
![Page 18: Acquisition of ERP · So what is ERP after all? l Packaged software –off the shelf ... company bankrupted by failed Sap implementation l Hershey’s unable to ship candy for Halloween](https://reader033.fdocuments.net/reader033/viewer/2022042102/5e7f4af50f8f7803cb71b26c/html5/thumbnails/18.jpg)
Acquisition Process
l Define acquisition strategyl Identify acquisition teaml Begin to define concept of operationsl Define requirementsl Survey marketplacel Complete draft concept of operationsl Prepare solicitation documentsl Publish solicitationl Evaluate respondersl Select providerl Project kickoff
![Page 19: Acquisition of ERP · So what is ERP after all? l Packaged software –off the shelf ... company bankrupted by failed Sap implementation l Hershey’s unable to ship candy for Halloween](https://reader033.fdocuments.net/reader033/viewer/2022042102/5e7f4af50f8f7803cb71b26c/html5/thumbnails/19.jpg)
Prepare Acquisition Strategy
l Full RFP?l Demosl One stagel Two stagel How do you know if you get what you want?
![Page 20: Acquisition of ERP · So what is ERP after all? l Packaged software –off the shelf ... company bankrupted by failed Sap implementation l Hershey’s unable to ship candy for Halloween](https://reader033.fdocuments.net/reader033/viewer/2022042102/5e7f4af50f8f7803cb71b26c/html5/thumbnails/20.jpg)
Acquisition Team
l Information technologyl Functional leadsl Project sponsorl Steering committee
![Page 21: Acquisition of ERP · So what is ERP after all? l Packaged software –off the shelf ... company bankrupted by failed Sap implementation l Hershey’s unable to ship candy for Halloween](https://reader033.fdocuments.net/reader033/viewer/2022042102/5e7f4af50f8f7803cb71b26c/html5/thumbnails/21.jpg)
Concept of Operations
l Business process improvement l Future technical architecturel Develop a strategy for implementationl Define and implement new business processes
![Page 22: Acquisition of ERP · So what is ERP after all? l Packaged software –off the shelf ... company bankrupted by failed Sap implementation l Hershey’s unable to ship candy for Halloween](https://reader033.fdocuments.net/reader033/viewer/2022042102/5e7f4af50f8f7803cb71b26c/html5/thumbnails/22.jpg)
Define Requirements
l What should the system do?l What is your scope?
l GLl APl Supply Chainl HR….
l Technical Specifications
![Page 23: Acquisition of ERP · So what is ERP after all? l Packaged software –off the shelf ... company bankrupted by failed Sap implementation l Hershey’s unable to ship candy for Halloween](https://reader033.fdocuments.net/reader033/viewer/2022042102/5e7f4af50f8f7803cb71b26c/html5/thumbnails/23.jpg)
Requirements
l Given your concept of operations, “what”should the system do, not “how.” For example:
l The system shall provide for review and approval of vendor invoice prior to creation of payment batch
VS.l The system shall integrate with VENINV,
the legacy invoice preparation application, to create and launch the invoice approval process
![Page 24: Acquisition of ERP · So what is ERP after all? l Packaged software –off the shelf ... company bankrupted by failed Sap implementation l Hershey’s unable to ship candy for Halloween](https://reader033.fdocuments.net/reader033/viewer/2022042102/5e7f4af50f8f7803cb71b26c/html5/thumbnails/24.jpg)
Technical Specifications
l What not to do– Customer-generated technical requirements can overlook recent innovations– Benchmarks can’t overcome customer’s telecommunications bottlenecks
l What to do– Focus on “whats” rather than “hows”– Describe your technical architecture (i.e. desktop environment, supported
database, etc.)
l Research vendor packagesl Let vendors describe recommended platforms
![Page 25: Acquisition of ERP · So what is ERP after all? l Packaged software –off the shelf ... company bankrupted by failed Sap implementation l Hershey’s unable to ship candy for Halloween](https://reader033.fdocuments.net/reader033/viewer/2022042102/5e7f4af50f8f7803cb71b26c/html5/thumbnails/25.jpg)
Technical Specifications Content
l General Technical Requirementsl Computing Hardware Specificationsl Software Specificationsl Integration with desktop automationl Workflowl Reportingl Organizationl Database Software and Development Toolsl General Business Application Requirementsl System Management, Administration and Securityl Technical Supportl Documentation
![Page 26: Acquisition of ERP · So what is ERP after all? l Packaged software –off the shelf ... company bankrupted by failed Sap implementation l Hershey’s unable to ship candy for Halloween](https://reader033.fdocuments.net/reader033/viewer/2022042102/5e7f4af50f8f7803cb71b26c/html5/thumbnails/26.jpg)
Market Survey
l Who are the players in your space?
l What tier do they occupy?l Where have they been
implemented and what part of their footprint was implemented?
l Is the package shipping in your language?
l Is the package tailored for your sector?
l What firms implement the package locally? What is their experience?
![Page 27: Acquisition of ERP · So what is ERP after all? l Packaged software –off the shelf ... company bankrupted by failed Sap implementation l Hershey’s unable to ship candy for Halloween](https://reader033.fdocuments.net/reader033/viewer/2022042102/5e7f4af50f8f7803cb71b26c/html5/thumbnails/27.jpg)
Discovery
l Informal discussions with potential vendors
l Current situationl Goals and objectivesl Functional setting/rqmtsl Technical setting/rqmtsl Free staff training
![Page 28: Acquisition of ERP · So what is ERP after all? l Packaged software –off the shelf ... company bankrupted by failed Sap implementation l Hershey’s unable to ship candy for Halloween](https://reader033.fdocuments.net/reader033/viewer/2022042102/5e7f4af50f8f7803cb71b26c/html5/thumbnails/28.jpg)
Complete Concept of Operations
l You’ve seen some packagesl You’ve thought about your requirementsl Now fill in your Conops with more detail
![Page 29: Acquisition of ERP · So what is ERP after all? l Packaged software –off the shelf ... company bankrupted by failed Sap implementation l Hershey’s unable to ship candy for Halloween](https://reader033.fdocuments.net/reader033/viewer/2022042102/5e7f4af50f8f7803cb71b26c/html5/thumbnails/29.jpg)
Prepare Solicitation Documents
l RFP should reflect not only your functional and technical requirements, but should also describe the vision you have for your future operations
l Your market survey should help you to limit competition to those who are in your niche and are most likely to perform
![Page 30: Acquisition of ERP · So what is ERP after all? l Packaged software –off the shelf ... company bankrupted by failed Sap implementation l Hershey’s unable to ship candy for Halloween](https://reader033.fdocuments.net/reader033/viewer/2022042102/5e7f4af50f8f7803cb71b26c/html5/thumbnails/30.jpg)
The RFP
1. INSTRUCTIONS TO OFFERORS1.1 Introduction and Summary1.2 General Information1.3 Eligibility of Commodities/Authorized Geographical Code1.4 Offer Deadline and Proposal Identification1.5 Preparation of Proposals1.6 Clarifications/Questions1.7 Bidders Conference1.8 Contents of Proposals1.9 Determination of Responsibility1.10 Offer Acceptance Period1.11 Signature1.12 Late Offers1.13 Modification of Offers1.14 Offer Evaluation and Contract Award1.15 Technical Evaluation Criteria (Total of 100 Points)1.16 Cost/Price Evaluation1.18 Type of Award1.19 Acceptance1.20 Payment Terms
![Page 31: Acquisition of ERP · So what is ERP after all? l Packaged software –off the shelf ... company bankrupted by failed Sap implementation l Hershey’s unable to ship candy for Halloween](https://reader033.fdocuments.net/reader033/viewer/2022042102/5e7f4af50f8f7803cb71b26c/html5/thumbnails/31.jpg)
RFP cont.
2. TECHNICAL SPECIFICATIONS2.1 Introduction2.2 Scope of Work (SOW)2.3 Functional Requirements2.4 System Architecture and Key Parameters2.5 Minimum Technical Requirements2.6 Hardware Schedule2.7 Software Schedule2.8 Deliverables3. FINANCIAL PROPOSAL4. PRICE SCHEDULE5. REPRESENTATIONS, CERTIFICATIONS, AND OTHER STATEMENTS OF
OFFERORSATTACHMENT A: SOURCE/ORIGIN/NATIONALITY OF PROPOSED SOFTWAREATTACHMENT B: FUNCTIONAL REQUIREMENT FITATTACHMENT C: TECHNICAL REQUIREMENT FITATTACHMENT D: REQUIRED FORMS AND REPORTS
![Page 32: Acquisition of ERP · So what is ERP after all? l Packaged software –off the shelf ... company bankrupted by failed Sap implementation l Hershey’s unable to ship candy for Halloween](https://reader033.fdocuments.net/reader033/viewer/2022042102/5e7f4af50f8f7803cb71b26c/html5/thumbnails/32.jpg)
Publish Solicitation
l Where are your vendors most likely to read your solicitation?
l If possible, forward to vendors, integration consultants
![Page 33: Acquisition of ERP · So what is ERP after all? l Packaged software –off the shelf ... company bankrupted by failed Sap implementation l Hershey’s unable to ship candy for Halloween](https://reader033.fdocuments.net/reader033/viewer/2022042102/5e7f4af50f8f7803cb71b26c/html5/thumbnails/33.jpg)
Evaluation Approach
1 INTRODUCTION1.1 Purpose1.2 Scope2 EVALUATION TEAM2.1 Team Selection2.2 Team Organization2.3 Team Responsibilities2.4 Evaluation Approvals2.5 Procurement Stakeholders3 PREPARING FOR EVALUATION3.1 Conduct Evaluation Team Training3.2 Prepare for Proposals4 MEETING MINIMUM REQUIREMENTS5 PROPOSAL EVALUATION PROCESS5.1 Receive and Log Proposal Submissions5.2 Review Proposals for Submission Requirements5.3 Review Proposals5.4 Determine Scores6 BIDDER PRESENTATIONS AND DEMONSTRATIONS7 FINAL COST EVALUATION PROCESS8 VENDOR SELECTION PROCESSES
![Page 34: Acquisition of ERP · So what is ERP after all? l Packaged software –off the shelf ... company bankrupted by failed Sap implementation l Hershey’s unable to ship candy for Halloween](https://reader033.fdocuments.net/reader033/viewer/2022042102/5e7f4af50f8f7803cb71b26c/html5/thumbnails/34.jpg)
Evaluate responders
l Minimum qualifications – short listl Languagel Certain key functionalityl Local presence
l Score functional, technical, management plan, prior qualifications, proposed team, cost
l Demo package from short-listed vendorsl Questions and answers
![Page 35: Acquisition of ERP · So what is ERP after all? l Packaged software –off the shelf ... company bankrupted by failed Sap implementation l Hershey’s unable to ship candy for Halloween](https://reader033.fdocuments.net/reader033/viewer/2022042102/5e7f4af50f8f7803cb71b26c/html5/thumbnails/35.jpg)
Select provider
l Negotiate termsl Negotiate pricel Negotiate project
![Page 36: Acquisition of ERP · So what is ERP after all? l Packaged software –off the shelf ... company bankrupted by failed Sap implementation l Hershey’s unable to ship candy for Halloween](https://reader033.fdocuments.net/reader033/viewer/2022042102/5e7f4af50f8f7803cb71b26c/html5/thumbnails/36.jpg)
Project Kickoff
l Transition acquisition team to implementation team
l Institutionalize implementation organization components
l Prepare for project monitoring
![Page 37: Acquisition of ERP · So what is ERP after all? l Packaged software –off the shelf ... company bankrupted by failed Sap implementation l Hershey’s unable to ship candy for Halloween](https://reader033.fdocuments.net/reader033/viewer/2022042102/5e7f4af50f8f7803cb71b26c/html5/thumbnails/37.jpg)
EMG’s Experience
l Painl Market Surveyl Stop and Startl More Market Surveyl Forming Acquisition Teaml Concept of Operationsl Requirementsl Demonstrationsl Acquisition Team Gets Smarterl Nirvana – maybe….
![Page 38: Acquisition of ERP · So what is ERP after all? l Packaged software –off the shelf ... company bankrupted by failed Sap implementation l Hershey’s unable to ship candy for Halloween](https://reader033.fdocuments.net/reader033/viewer/2022042102/5e7f4af50f8f7803cb71b26c/html5/thumbnails/38.jpg)
Pain
• No posting with users logged in• No comparison with prior FY periods• No reporting for project people
![Page 39: Acquisition of ERP · So what is ERP after all? l Packaged software –off the shelf ... company bankrupted by failed Sap implementation l Hershey’s unable to ship candy for Halloween](https://reader033.fdocuments.net/reader033/viewer/2022042102/5e7f4af50f8f7803cb71b26c/html5/thumbnails/39.jpg)
Forming Acquisition Team
• Key users• Each functional area represented• Discussions with consulting firms• Informal demonstrations
![Page 40: Acquisition of ERP · So what is ERP after all? l Packaged software –off the shelf ... company bankrupted by failed Sap implementation l Hershey’s unable to ship candy for Halloween](https://reader033.fdocuments.net/reader033/viewer/2022042102/5e7f4af50f8f7803cb71b26c/html5/thumbnails/40.jpg)
Concept of Operations
l Multi-user environmentl Consolidations across firml Support for multi-currencyl Internet time-sheetsl Internet expense reportsl Automated comparison of current to prior
periodsl Better management of fringe and overhead
poolsl Integration of HR, Payroll and Financials
![Page 41: Acquisition of ERP · So what is ERP after all? l Packaged software –off the shelf ... company bankrupted by failed Sap implementation l Hershey’s unable to ship candy for Halloween](https://reader033.fdocuments.net/reader033/viewer/2022042102/5e7f4af50f8f7803cb71b26c/html5/thumbnails/41.jpg)
Requirements Example
l SR1: Application should have the ability to integrate with Exchange to notify users of certain user-defined events such as projects reaching funding ceilings
l SR2: Application supports the ability to record a transaction (AP, GL journal entry) in foreign currency with a given exchange rate
l SR3: Application integrates with 3rd party source of currency exchange rates
l SR4: Application supports the financial evaluation of transaction at the time of transaction and current value
![Page 42: Acquisition of ERP · So what is ERP after all? l Packaged software –off the shelf ... company bankrupted by failed Sap implementation l Hershey’s unable to ship candy for Halloween](https://reader033.fdocuments.net/reader033/viewer/2022042102/5e7f4af50f8f7803cb71b26c/html5/thumbnails/42.jpg)
Demonstrations
l Project Managementl Contract Managementl Financial Accountingl Reporting
![Page 43: Acquisition of ERP · So what is ERP after all? l Packaged software –off the shelf ... company bankrupted by failed Sap implementation l Hershey’s unable to ship candy for Halloween](https://reader033.fdocuments.net/reader033/viewer/2022042102/5e7f4af50f8f7803cb71b26c/html5/thumbnails/43.jpg)
Acquisition Team Gets Smarter
l With each discussion, demo, staff gets progressively smarter;
l Better sense of functional requirements
l Better sense of concept of operations
![Page 44: Acquisition of ERP · So what is ERP after all? l Packaged software –off the shelf ... company bankrupted by failed Sap implementation l Hershey’s unable to ship candy for Halloween](https://reader033.fdocuments.net/reader033/viewer/2022042102/5e7f4af50f8f7803cb71b26c/html5/thumbnails/44.jpg)
Technical Specifications
l MS Office 2007l Exchange 2003l HP Server hardwarel No database standardl Looking for vendor proposals on configuration
l Web serverl Apps serverl Database serverl Reporting server
![Page 45: Acquisition of ERP · So what is ERP after all? l Packaged software –off the shelf ... company bankrupted by failed Sap implementation l Hershey’s unable to ship candy for Halloween](https://reader033.fdocuments.net/reader033/viewer/2022042102/5e7f4af50f8f7803cb71b26c/html5/thumbnails/45.jpg)
Nirvana? - maybe