Enterprise Resource Planning (ERP) Systems Special Considerations Information Resources Management...

Enterprise Resource Planning (ERP) Systems

Special Considerations

Information Resources Management CollegeInformation Resources Management College

National Defense UniversityNational Defense University

2

Agenda

BackgroundBackground What is an ERP? What is an ERP?

Evolution of ERPsEvolution of ERPs ERP VendorsERP Vendors What’s in an ERP?What’s in an ERP?

Why ERP? Why ERP? Where are ERPs being used?Where are ERPs being used?

3

Agenda

Implementation StrategiesImplementation Strategies ERP MaintenanceERP Maintenance Key IssuesKey Issues Future of ERPsFuture of ERPs Lessons LearnedLessons Learned OversightOversight ConclusionsConclusions

http://members.aol.com/lpang10473/erp.htm

4

Time of Change

Core business applications moving toward...Core business applications moving toward... COTS software modules with graphical COTS software modules with graphical

development toolsdevelopment tools Web-based accessibilityWeb-based accessibility Globalization Globalization Integration between functional modulesIntegration between functional modules

Data flow among the business unitsData flow among the business units Common look-and-feelCommon look-and-feel

Source: PricewaterhouseCoopers

5

Stovepiped Systems

Fina

nce

Pro

cure

men

t

Pro

du

ctio

n Lo

gistics

Hum

an Resources

Operations

Tactics

Strategy

data data data data data

deci

sion

sde

cisi

ons

deci

sion

s decisionsdecisions

6

Integrated Systems

Finance

Procurement

Pro

du

ction L

og

isti

csHum

an R

esou

rces

dataPlanning

Other Departments

7

What is an ERP?

Applications of integrated software Applications of integrated software solutions which support enterprise-wide solutions which support enterprise-wide business requirements. business requirements.

Consists of modules that focus on specific Consists of modules that focus on specific aspects of the enterprise business.aspects of the enterprise business.

8

What is an ERP? Integrates functions across an Integrates functions across an

organization onto a single computer organization onto a single computer system that serves everyone’s needssystem that serves everyone’s needs

Eases the exchange of data and Eases the exchange of data and facilitates communication among facilitates communication among departments departments

Each module works separately Each module works separately performing specific data-processing performing specific data-processing functionsfunctions

9

Examples of ERP Modules

Human Resource ManagementHuman Resource Management Financial ManagementFinancial Management Supply Chain ManagementSupply Chain Management ProcurementProcurement Logistics and Materials ManagementLogistics and Materials Management Planning and BudgetingPlanning and Budgeting Sales and DistributionSales and Distribution Student AdministrationStudent Administration Many, many more…Many, many more…

10

Evolution of ERPs 1960s and 1970s - Materials Requirement 1960s and 1970s - Materials Requirement

Planning (MRP) Systems – precursor to ERP Planning (MRP) Systems – precursor to ERP 1972 – Five former IBM employees in 1972 – Five former IBM employees in

Mannheim, Germany created an ERP systemMannheim, Germany created an ERP system 1978 – Mainframe-based Enterprise 1978 – Mainframe-based Enterprise

architecturearchitecture 1992 – Client/server platform1992 – Client/server platform 1993 - $319 million in revenue1993 - $319 million in revenue 1999 - $17.7 billion in revenue (x55 increase) 1999 - $17.7 billion in revenue (x55 increase) 1999 – Y2k preparation; Web accessibility1999 – Y2k preparation; Web accessibility 2003 - $25 billion in revenue2003 - $25 billion in revenue

11

ERP Vendors

SAP*SAP* Oracle*Oracle* PeopleSoft* PeopleSoft* AMS (CGI)*AMS (CGI)* BaanBaan Others including PartnersOthers including Partners

* Joint Financial Management Improvement Program (JFMIP) Certified Software – vendor’s financial module meets Federal Government financial system requirements.

12

ERP Growth (North America)

6.28.1

10.5

13.6

17.7

23

0.171 0.253 0.318 0.41 0.530

5

10

15

20

25

1995 1996 1997 1998 1999 2000

dol

lars

in b

illi

ons

ERP Rev Planning & Scheduling

0.69

13

Benefits Integrates organization activitiesIntegrates organization activities Employs “best practices”Employs “best practices” Enables organizational standardizationEnables organizational standardization Improves information management via Improves information management via

single databasesingle database Provides on-line and real-time Provides on-line and real-time

informationinformation Facilitates intra- and inter-organization Facilitates intra- and inter-organization

communication and collaborationcommunication and collaboration

14

ERP Drivers BusinessBusiness

Customer SatisfactionCustomer Satisfaction Efficient processes requirement (BPR)Efficient processes requirement (BPR) Competitive challengesCompetitive challenges Labor shortagesLabor shortages

Information TechnologyInformation Technology Past Y2K ProblemPast Y2K Problem Systems integration - Legacy systemsSystems integration - Legacy systems Modernization of hardware/softwareModernization of hardware/software On-line collaboration/InternetOn-line collaboration/Internet

15

Who are Using ERP’s? Private Sector (70% of 1,000 largest Private Sector (70% of 1,000 largest

companies)companies) MicrosoftMicrosoft IBM IBM General MotorsGeneral Motors Hewlett Packard Hewlett Packard CSXCSX BoeingBoeing Mercedes-Benz Mercedes-Benz Many more…Many more…

16

Who are Using ERP’s? Federal SectorFederal Sector

Defense Defense OSDOSD – Defense Integrated Military Human – Defense Integrated Military Human

Resources System (DIMHRS)Resources System (DIMHRS)• DLADLA - Business Systems Modernization - Business Systems Modernization• NavyNavy – Navy ERP – Navy ERP• ArmyArmy - Logistics Modernization Program - Logistics Modernization Program

(LMP), GCSS-Army, General Fund (LMP), GCSS-Army, General Fund Enterprise Business System (GFEBS)Enterprise Business System (GFEBS)

• Air ForceAir Force – Defense Enterprise Accounting – Defense Enterprise Accounting Management System (DEAMS)Management System (DEAMS)

17

Who are Using ERPs? Federal Sector (cont.)Federal Sector (cont.)

Interior, HHS, GSA, Labor, VAInterior, HHS, GSA, Labor, VA: Human : Human ResourcesResources

TreasuryTreasury: U.S. Mint - Consolidated : U.S. Mint - Consolidated Information System (COINS), HR ConnectInformation System (COINS), HR Connect

NASANASA: Integrated Financial Management : Integrated Financial Management Program (IFMP)Program (IFMP)

EnergyEnergy: Administration and support; : Administration and support; resource managementresource management

Transportation, CommerceTransportation, Commerce: Financials: Financials

18

Key Issues - Process Do it OUR wayDo it OUR way

Considerable business process Considerable business process changes for the organizationchanges for the organization

OK, don’t do it our way OK, don’t do it our way Customization: cost, maintenance Customization: cost, maintenance

(upgrades), compatibility issues(upgrades), compatibility issues

19

Key Issues - People

Employee resistanceEmployee resistance Job Changes Job Changes

Retraining and re-orientationRetraining and re-orientation Likely more data collection Likely more data collection

screens than in legacy systemscreens than in legacy system Loss of ERP veteransLoss of ERP veterans SecuritySecurity

20

Key Issues - Technology Data migration from legacy Data migration from legacy

systemssystems Lack of interoperability among Lack of interoperability among

different vendor productsdifferent vendor products Maintenance Maintenance

21

Key Issues - Financial CostCost

Range = $400,000 - $300 millionRange = $400,000 - $300 million TCO = $53,320 per user (Meta Group)TCO = $53,320 per user (Meta Group) Hidden costsHidden costs

TrainingTraining Integration and TestingIntegration and Testing Data ConversionData Conversion Data AnalysisData Analysis Consulting FeesConsulting Fees TurnoverTurnover

Source: CIO Magazine

22

Horror Stories WhirlpoolWhirlpool: ERP implementation crippled its : ERP implementation crippled its

shipping system, leaving appliances stacked on shipping system, leaving appliances stacked on loading docks and not delivered to paying loading docks and not delivered to paying customers for a full eight weeks.customers for a full eight weeks.

Hershey FoodsHershey Foods: A 19 percent drop in earnings : A 19 percent drop in earnings was caused by an incompetent ERP was caused by an incompetent ERP implementation that wreaked distribution implementation that wreaked distribution havoc during one of its most profitable havoc during one of its most profitable seasons: Halloween.seasons: Halloween.

VolkswagenVolkswagen: Significant delays in parts : Significant delays in parts shipments causing product inventories to build shipments causing product inventories to build up to costly levels.up to costly levels.

““Half of the issues in ERP disasters are not technical Half of the issues in ERP disasters are not technical but are people related and culture related.”but are people related and culture related.”


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Horror Stories Labor DepartmentLabor Department: Cost jumped from : Cost jumped from

$26.5 million to $71 million due to $26.5 million to $71 million due to underestimating implementation and underestimating implementation and operating costsoperating costs

Department of Veteran’s AffairsDepartment of Veteran’s Affairs: Cost : Cost jumped from $170 million to $417 jumped from $170 million to $417 million; currently two years behind million; currently two years behind scheduleschedule

NASANASA: ERP failed to produce accurate : ERP failed to produce accurate financial reports; unable to close year-financial reports; unable to close year-end books on a Cal Tech contractend books on a Cal Tech contract

Source: GAO, Federal Computer Week

24

Implementation Strategies

Process MappingGenerating process flows

using the reference models as input tailored

to project requirements

Activityschedule &Resp. chart

X - eXecutes the workD - takes (final) decisiond - takes decision with consultationP - manage progressT - provides tuition on the jobC - must be consulted I - must be informedA - available to Advice

Project

Period length:

Date issued: Approved by:

Target completion:

Period Milestone:

Companies / Departments / Functions / Group of employees

Arb.vol. M/D/W1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7

IO1 Project plan and Project Setup

IT1 Hardware & software installed

IO2 Company Informed

IT2 System/Appl. Mgt Initiated

IP1 Concept training Key Users done

IB2 Preliminary Bus. Model Acc.

IC1 High priority Cust. Specified

IO3 Organizational Model Approved

IP2 Adv. Key Users Training done

IT3 Data Conversion Plan Defined

IB3 Data Coding Schemes Defined

IO4 Internal Doc. Generated

IC2 Cust. Defined a/o Completed

II1 Ext. Interfaces Spec. Defined

IT4 System/Appl. Mgt Finalized

IB4 Final Bus. Solution Agreed

D

D

D

D

D

D

C

C C

C

C

C

C

C

C

C

C

C

C

X

C

C

C

CC

PX

X X

X

X

C

X

XXX

X

X

X

X

X

X X

X

X X

X

X

X

X

X

X

X X

X

A

A

A

I

I

I

I

I

I

I

I P

P

P

P

P

P

P

P

P

P

P

P

P

Baan Target

Mapping/Piloting

System ImplementationCustomization and

optimization of software

Select Application SW

link software applications that fulfill business process

requirements

Sel

ecte

d B

usi

nes

s P

roce

sses

Inventory of COTS software

Selectedsoftware matching selectedprocesses

e.g.Supply ChainPersonnelFinanceE-CommerceManufacturingDistributionSales Force Auto.

Baseline SW for Implementation

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Implementation Steps

Project Preparation – implementation Project Preparation – implementation strategy, project team, system strategy, project team, system landscape, technical requirements, landscape, technical requirements, vendor selectionvendor selection

Business Blueprint and Realization – Business Blueprint and Realization – technical design, development system, technical design, development system, testing, production system installationtesting, production system installation

Source: Accelerated SAP (ASAP) Method

26

Implementation Steps

Final Preparation – operational system, Final Preparation – operational system, data transfer, testing, help deskdata transfer, testing, help desk

Go Live and Support – process Go Live and Support – process monitoring, operational help desk, monitoring, operational help desk, definition long-term release strategydefinition long-term release strategy

27

Key Planning and Implementation Decisions

To ERP or not ERP?To ERP or not ERP? What to hold on to?What to hold on to? Customization: Big R or small r?Customization: Big R or small r? Big bang or phased implementation?Big bang or phased implementation? Single package or best-of-breed?Single package or best-of-breed? Which ERP package?Which ERP package? What Enterprise?What Enterprise?

28

ERP or not to ERP?

Business Case Rationale Business Case Rationale TechnologyTechnology

Disparate SystemsDisparate SystemsPoor quality existing systemsPoor quality existing systemsDifficult to integrate acquisitionsDifficult to integrate acquisitions

ProcessProcessPersonnel and IT cost reductionsPersonnel and IT cost reductionsProductivity improvementsProductivity improvementsClosing the financial cycleClosing the financial cycle

29

ERP or not to ERP? Business Case Rationale (cont.)Business Case Rationale (cont.)

StrategicStrategicAble to implement new strategies Able to implement new strategies

not supported by the current not supported by the current software (eCommerce and portals)software (eCommerce and portals)

Improving customer service and Improving customer service and satisfactionsatisfaction

CompetitiveCompetitive““Competition has it”Competition has it” Improved customer responseImproved customer response

30

What to hold on to? OutsourcingOutsourcing

Continue to focus on core missionContinue to focus on core mission Avoiding a huge financial commitmentAvoiding a huge financial commitment Minimize impact on IT departmentMinimize impact on IT department

In-HouseIn-House Better match between the software Better match between the software

and the businessand the business Applications are optimized for the Applications are optimized for the

organizationorganization SecuritySecurity

31

Customization: Big R or Small r?

Ext

ent

of

Ch

ang

e to

Pro

cess

es

Extent of Change to Software

Minimal Extensive

Minimal

Extensive

BIG R

Smallr

Potential Failure

because of Process Changes

Potential Failure

because of Process

Changes and S/W Changes

Highest Probability of

Successful Implementation

Potential Failure because of S/W

Changes

32

Big Bang or Phased Implementation?

Big Bang (All modules at all locations Big Bang (All modules at all locations implemented at the same time)implemented at the same time) No need for temporary interfacesNo need for temporary interfaces Limited need to maintain legacy Limited need to maintain legacy

softwaresoftware Cross-module functionalityCross-module functionality No going backNo going back Lower cost if no surprisesLower cost if no surprises

33

Big Bang or Phased Implementation?

Phased (Modules implemented one or a Phased (Modules implemented one or a group at a time, often at a single group at a time, often at a single location at a time)location at a time) Smoothing of resource requirementsSmoothing of resource requirements Able to focus on a particular moduleAble to focus on a particular module Legacy system fall backLegacy system fall back Reduced riskReduced risk Knowledge gained with each phaseKnowledge gained with each phase Used to demonstrate a working Used to demonstrate a working

systemsystem

34

Other Implementation Approaches

Wave – different waves of change to a Wave – different waves of change to a different business unit or regiondifferent business unit or region

Parallel – both ERP and existing system run Parallel – both ERP and existing system run together for a period of timetogether for a period of time Basis of comparisonBasis of comparison Existing system serves as backupExisting system serves as backup Requires more computing and human Requires more computing and human

resources – more costlyresources – more costly Existing system may not be properly Existing system may not be properly

maintained during the periodmaintained during the period Reengineering not supported by existing Reengineering not supported by existing

systemssystems

35

Single Package or Best of Breed?

Single PackageSingle Package High interoperability among modulesHigh interoperability among modules Common look and feelCommon look and feel StandardizationStandardization

Best of BreedBest of Breed Organization gets required functionalityOrganization gets required functionality Higher costHigher cost Incompatibility among modules and Incompatibility among modules and

among systemsamong systems

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Maintenance of an ERP System bugsSystem bugs User assistanceUser assistance Changes to systemChanges to system Manage different input and output Manage different input and output

requirementsrequirements DocumentationDocumentation TrainingTraining Maintaining and updating softwareMaintaining and updating software BudgetingBudgeting

37

Which ERP Package? Functional fit with your business practicesFunctional fit with your business practices Degree of integration among components of the ERP Degree of integration among components of the ERP

systemsystem Flexibility and scalabilityFlexibility and scalability User friendlinessUser friendliness Quick implementationQuick implementation Ability to support multi-site planning and controlAbility to support multi-site planning and control Technology: client/server capabilities, database Technology: client/server capabilities, database

independence, securityindependence, security Availability of regular upgradesAvailability of regular upgrades Amount of customization requiredAmount of customization required Local support infrastructureLocal support infrastructure Costs – license, training, implementation, maintenance, Costs – license, training, implementation, maintenance,

customization, hardware requirementscustomization, hardware requirements

Source: Baan Infosystems

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Future of ERPs

Web interfaces: eCommerce, portals, Web interfaces: eCommerce, portals, XML, web servicesXML, web services

Application Service Providers (ASP)Application Service Providers (ASP) Enterprise Application Integration (EAI) Enterprise Application Integration (EAI)

middleware for linking ERP with legacy middleware for linking ERP with legacy systemssystems

““ERP II” – next generation of toolsERP II” – next generation of tools Single InstanceSingle Instance Business Process Management (BPM)Business Process Management (BPM)

39

What Enterprise?

That which is undertaken; something That which is undertaken; something attempted to be performed; a work attempted to be performed; a work projected which involves activity, projected which involves activity, courage, energy, and the like; a bold, courage, energy, and the like; a bold, arduous, or hazardous attempt; an arduous, or hazardous attempt; an undertaking undertaking Webster's Revised Unabridged DictionaryWebster's Revised Unabridged Dictionary

40

Enterprise Factors to Consider:Factors to Consider:

Functional RelationshipsFunctional Relationships Management ControlManagement Control AffordabilityAffordability AchievabilityAchievability

Start at the top - Start at the top - Agree to VisionAgree to Vision Enterprise ArchitectureEnterprise Architecture Shared InformationShared Information Common Business RulesCommon Business Rules

41

Private Sector: Lessons Learned

Define the business value Define the business value Set up regular review measuresSet up regular review measures Don't underestimate the art of "change Don't underestimate the art of "change

management" management" Make sure that every vendor involved in Make sure that every vendor involved in

the project has "skin in the game" the project has "skin in the game" Don't lose sight of the impact on the Don't lose sight of the impact on the

customer. customer.


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Federal Sector: Lessons Learned

Assign a high level business manager Assign a high level business manager to the projectto the project

Pro-active, high-level user participation Pro-active, high-level user participation throughout the processthroughout the process

Avoid customization Avoid customization Ensure that the infrastructure can Ensure that the infrastructure can

support the ERPsupport the ERP OutsourceOutsource

43

Federal Sector: Lessons Learned

Build an enterprise architecture firstBuild an enterprise architecture first Stick with a mainstream vendorStick with a mainstream vendor Think through implementation strategyThink through implementation strategy Perform pilot implementationsPerform pilot implementations Be prepared for transition turmoilBe prepared for transition turmoil Provide staff training and orientationProvide staff training and orientation Estimate project costs using Best Estimate project costs using Best

PracticesPractices

44

Top 10 ERP Mistakes Believing “go live” ends the journeyBelieving “go live” ends the journey Ignoring the early performance dipIgnoring the early performance dip Sacrificing strategic for the tacticalSacrificing strategic for the tactical Delaying the data focusDelaying the data focus Not engaging the “A Team”Not engaging the “A Team” Missing the senior governance councilMissing the senior governance council Ignoring advice from integratorIgnoring advice from integrator Overlooking CultureOverlooking Culture Focusing on Technical vs. BusinessFocusing on Technical vs. Business Forgetting the Business CaseForgetting the Business Case

Deloitte Consulting

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Oversight Internal EngagementInternal Engagement

Senior LeadershipSenior Leadership Regular, FrequentRegular, Frequent OwnershipOwnership

External External Portfolio Perspective Portfolio Perspective Milestone Adjustment – EI ToolkitMilestone Adjustment – EI Toolkit ““Go Live”Go Live”

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OSD Oversight of ERP

DoD 5000 / COTS Alignment

Defense Acquisition Management Framework – Traditional

Defense Acquisition Management Framework – For COTS Enterprise Systems

Go Live

ConceptRefinement

TechnologyDevelopment

SystemDevelopment & Demonstration

Production &Deployment

Operations &Support

A B C IOC FOC

Pre-Systems Acquisition Systems Acquisition Sustainment

Pre-Initiation

Software & Systems Integration Selection,

Project Prep &Blueprinting

Configuration &Report, Interface,

Conversion, Extension (RICE)

Development

Sustainment & Roll Out

A B C IOC FOC

Pre-Systems Acquisition Systems Acquisition Sustainment

FDDR

FDDRConcept Decision

Transition& Cutover

Ltd. Deplt/OT&E

47


Milestone A Document Requirements for COTS/ERP

Acquisition Strategy (includes Tech Development Acquisition Strategy (includes Tech Development Strategy & Market Survey)Strategy & Market Survey)

ICD (based on JCIDS analysis: FAA, FNA, FAA)ICD (based on JCIDS analysis: FAA, FNA, FAA) Clinger-Cohen Act Compliance/CertificationClinger-Cohen Act Compliance/Certification

Core mission determination, AoA, BPR, & outcome- Core mission determination, AoA, BPR, & outcome- based performance measures (should result from based performance measures (should result from JCIDS analysis)JCIDS analysis)

Outsourcing determination (AoA & Acq Strategy)Outsourcing determination (AoA & Acq Strategy) Economic Analysis (high level)Economic Analysis (high level) Info Assurance Strategy (high level)Info Assurance Strategy (high level)

Performance goals for the phase (including schedule, Performance goals for the phase (including schedule, cost & exit criteria)cost & exit criteria)

Test & Evaluation StrategyTest & Evaluation Strategy Concept BaselineConcept Baseline BMMP CertificationBMMP Certification ADM (prepared by OASD(NII))ADM (prepared by OASD(NII))

48

Proposed Integrated Oversight Process for COTS

Enterprise Systems

INITIATIONINITIATION

PreparationPreparation

Define Problem/Challenge


Business Case(High Level)


Requirements(High Level)


Project CharterProject Charter

ApprovalApproval

ApprovalApproval

ACQUISITIONACQUISITION


Requirements(mid-level)


Develop and Issue RFP/RFQ


Vendor Evaluations

Vendor Evaluations

License/AgreementLicense/

Agreement

AwardAward

ApprovalApproval


Develop andIssue RFP/SOO


VendorEvaluations

VendorEvaluations

Service Agrmt& Task Order(s)Service Agrmt

& Task Order(s)

AwardAward

ApprovalApproval

IMPLEMENTATIONIMPLEMENTATION


Blueprint *Blueprint *

Design/Build **Design/Build **

Transition/Cutover

Transition/Cutover

ApprovalApproval

InitialGo-Live Support


ApprovalApproval

Project CloseProject Close

OngoingSupportOngoingSupport

Process/FunctEnhancementsProcess/FunctEnhancements

CompetencyCenter

CompetencyCenter

Reviews and Training


ProductionRollout

ProductionRollout

UpgradesUpgrades

SUSTAINMENTSUSTAINMENT

CONTINUOUSIMPROVEMENT


Systems IntegrationServices

Systems IntegrationServicesSoftwareSoftware

PII EvaluationPII Evaluation

PI EvaluationPI Evaluation

SCRs: Architecture Evaluations and

Advocacy Reviews as required during Sustainment / Improvement Stages

Advocacy Criteria III b

Milestone A

Milestone C/FRDR

Milestone B

SCR Evaluation

Criteria

Go Live

Advocacy Criteria IIIa

Advocacy Criteria IVb

Advocacy Criteria V

PIII

ApprovalApproval

AlternativesAnalysis


Advocacy Criteria I

Advocacy Criteria II

Advocacy Criteria IVa

Component Architecture Evaluation

= Architecture

= Domain Owner Advocacy

= Milestone Decision

= Domain Advocacy Criteria

* Blueprint = Detailed Requirements and High-Level Design**Design/Build = Detailed Design, Configure/Develop, and Test***Website = www.deskbook.dau.mil/software/gen/home.html


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INITIATIONINITIATION








Project CharterProject Charter

ApprovalApproval

ApprovalApproval

ACQUISITIONACQUISITION






Vendor Evaluations

Vendor Evaluations

License/AgreementLicense/

Agreement

AwardAward

ApprovalApproval




VendorEvaluations

VendorEvaluations

Service Agrmt& Task Order(s)Service Agrmt

& Task Order(s)

AwardAward

ApprovalApproval

IMPLEMENTATIONIMPLEMENTATION


Blueprint *Blueprint *

Design/Build **Design/Build **

Transition/Cutover

Transition/Cutover

ApprovalApproval



ApprovalApproval

Project CloseProject Close

OngoingSupportOngoingSupport

Process/FunctEnhancementsProcess/FunctEnhancements

CompetencyCenter

CompetencyCenter



ProductionRollout

ProductionRollout

UpgradesUpgrades

SUSTAINMENTSUSTAINMENT



Systems IntegrationServices

Systems IntegrationServicesSoftwareSoftware

PII EvaluationPII Evaluation

PI EvaluationPI Evaluation

SCRs: Architecture Evaluations and

Advocacy Reviews as required during Sustainment / Improvement Stages

Advocacy Criteria III b

Milestone A

Milestone C/FRDR

Milestone B

SCR Evaluation

Criteria

Go Live

Advocacy Criteria IIIa

Advocacy Criteria IVb

Advocacy Criteria V

PIII

ApprovalApproval

Includes ICD Approval by Domain/JCS

MS ABusiness Case*

ASRIA Strategy

Test Strategy

MS BTEMP

IA StrategyC4ISPCDD

Updated BCA



Advocacy Criteria I

Advocacy Criteria II

Advocacy Criteria IVa

MS CCPD

OT ResultsPIR PlanUpdated-

C4ISP


Proposed Integrated Oversight Process for COTS Enterprise Systems

*Business Case will contain essential elements of AoA, OBM, EA, APB, CCA & CARD

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MS RequirementMS Requirement StatusStatus Domain/JCSDomain/JCS MS AMS A MS BMS B MS C/FRDRMS C/FRDR

Initial Capabilities DocumentInitial Capabilities Document In - ModIn - Mod

Clinger Cohen (CCA)Clinger Cohen (CCA) InIn

Business Case: (includes key elements)Business Case: (includes key elements)

AoA & AoA PlanAoA & AoA Plan

EAEA

Outcome Based MeasuresOutcome Based Measures

APBAPB

CARDCARD

CCA (Cost)CCA (Cost)

NewNew UpdatedUpdated

Capabilities Development Document Capabilities Development Document (CDD)(CDD) In - ModIn - Mod

Capabilities Production Document Capabilities Production Document (CPD)(CPD) ??

C4ISPC4ISP ?? UpdatedUpdated

Information Assurance Strategy (IA)Information Assurance Strategy (IA) In - ModIn - Mod

Acquisition Strategy (ASR)Acquisition Strategy (ASR) In - ModIn - Mod

Test StrategyTest Strategy ??

Test & Evaluation Master Plan (TEMP)Test & Evaluation Master Plan (TEMP) In - ModIn - Mod

DT & OTDT & OT In - ModIn - Mod

OT ResultsOT Results InIn

PIR PlanPIR Plan In - ModIn - Mod

OSD Oversight of ERP Proposed Milestone Review Requirements

OSD Oversight of ERP Proposed Milestone Review Requirements

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Conclusions

A major business and IT strategy for A major business and IT strategy for meeting organization’s vision and goalsmeeting organization’s vision and goals

High reward High reward butbut high risk high risk Change management is a critical Change management is a critical

success factor: people, process and success factor: people, process and systemssystems

Engaged leadershipEngaged leadership

and oversightand oversight

Questions?

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Enterprise Resource Planning Systems: Issues in Strategic

Planning and Implementation

EAI0403 will be offered at the IRM College – EAI0403 will be offered at the IRM College – National Defense University, Ft. McNairNational Defense University, Ft. McNair

August 2-6, 2004 August 2-6, 2004 Provides an overview of issues surrounding the Provides an overview of issues surrounding the

strategic planning and implementation of strategic planning and implementation of enterprise applications, specifically, Enterprise enterprise applications, specifically, Enterprise Resource Planning (ERP) and Customer Resource Planning (ERP) and Customer Relationship Management (CRM) systems. Relationship Management (CRM) systems.

To register for this education opportunity, go To register for this education opportunity, go to http://www.ndu.edu/irmc/ and click on uNet to http://www.ndu.edu/irmc/ and click on uNet Login.Login.

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