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    Making Leaders Successful

    Every Day

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    2013 Forrester Research, Inc. Reproduction Prohibited 2

    Optimizing Dynamics AX Implementations

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    Source: Forrsights Services Survey, Q2 2012

    How much of an impact do you believe the following changes and initiatives will have on your firm's

    IT services spending over the next 12 months?

    28%

    30%

    24%

    38%

    38%

    34%

    34%

    41%

    37%

    35%

    10%

    17%

    26%

    21%

    28%

    34%

    37%

    31%

    42%

    50%

    We are bringing in new, smaller, more innovative vendors to help usimplement new technologies

    The increased reliance on predictive analytics to help inform betterand timelier business decisions

    The need to grow/expand the business in new geographies and

    developing countries

    Business executives taking a more active role in the provisioning anddecision-making for technology and IT services

    The increased use of software, infrastructure or business process as-a-service offerings

    Consolidation of business units or streamlining operations

    The increasing use of smartphones and tablets, as well as the appson them

    Senior business management's conservative approach to spendingon large projects

    The need to lower our IT operational costs

    The need to innovate and grow our business

    Moderate impact Significant impact

    Base: 1,058 IT services decision-makers

    Companies are gearing up for innovation and growth

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    Make your spend count: spend on innovation andbusiness value

    65%

    35%

    Average performers -- the IT spend iceberg

    Spend on operation and maintenance vs. innovation

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    Step 1: Get current on your version of Dynamics AX

    Technical upgrade to reduce maintenance and support costs

    Functional upgrade to improve business value

    Move away from extensive custom code revaluate need for this and

    look to leverage a more vanilla Dynamics AX

    Look to out-of-the-box best practices

    Upgrade to a current version to be able to leverage new features and

    add-ons

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    Step 2: Optimize Infrastructure and Maintenance SpendAnd Value

    Consider instance consolidation if you are fragmented

    Move to virtualized or cloud models to gain economies of scale

    Centralize support and management functions

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    Step 3: Evaluate your sourcing strategy

    Evaluate whether an outsourced or managed services model would

    generate cost savings and potentially business value

    Cost savings can be on the order of 20% to 30% or higher

    Look for outcome-based contracts on better service but also on

    business value

    Leverage the providers' economies of scales

    Evaluate offshore or other low-cost delivery options --- look for lower cost

    labor pools

    Evaluate productized IP and solution accelerators that can remove cost

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    Plan now for future growth and needs

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    2013 Forrester Research, Inc. Reproduction Prohibited 9

    Major technology forces maximize and extend ERP value

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    How important were the following benefits in your firms decision to use SaaS?

    11%

    14%

    17%

    24%

    24%

    20%

    35%

    28%

    29%

    34%

    39%

    22%

    23%

    25%

    23%

    24%

    28%

    25%

    32%

    35%

    32%

    33%

    Having access to a wide ecosystem of solutions around the core SaaSapplication

    Iterative deployment model supports a higher level of innovation withinthe business

    Gaining a feature or functionality that is not available in a traditional,licensed software package

    Lack of in-house IT staff to maintain a traditional software solution

    To support a large number of mobile and remote users

    Ability to substitute upfront costs with regular monthly payments

    Lower overall costs

    Faster delivery of new features and functions from SaaS/as-a-service

    providers

    Speed of implementation and deployment

    Allows us to focus resources on more important projects

    Improved business agility

    5 - Very important factor 4 (On an importance factor of 1-5, 1=Not at all a factor)

    SaaS alternatives drive agility and speed to value

    Base: 920 packaged application decision-makers

    Source: Forrsights Software Survey, Q4 2011

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    2013 Forrester Research, Inc. Reproduction Prohibited 11

    Maximize ERP value by extending to the cloud

    Add-on technology areas that surround core ERP

    HCM

    CRM

    Collaboration

    Two-tier ERP with cloud-enabled ERP in divisions or regions

    Faster time to value Greater ongoing agility

    Cloud-enabled technology for test/dev or pilots

    Quick spin up of new solutions

    Scale up / scale down for spikey workloads

    Full ERP suite deployed in the cloud

    Still a growing area but more organizations moving in this direction

    Software vendor solutions and partner- (ecosystem-) enabled

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    What are your firm's plans to adopt the following business intelligence and analytics technologies?

    11%

    16%

    15%

    15%

    27%

    21%

    16%

    19%

    21%

    27%

    19%

    36%

    OLAP (AKA 'slicing and dicing' analytics)

    Embedded analytics (e.g., within ERP, CRM)

    Performance analytics

    Dashboards

    Web analytics (e.g., analysis of Internet/web pagetraffic)

    Reporting

    Implemented, not expanding Expanding/ upgrading implementation

    Base: 1,631 software decision-makers from firms with 20 or more employees who are involved inpackaged application software decision-making

    Source: Forrsights Software Survey, Q4 2012

    Most firms have not yet implemented advanced analyticsyet

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    Which of the following initiatives are likely to be your IT organization's top software technology

    priorities over the next 12 months?

    21%

    25%

    39%

    37%

    46%

    46%

    45%

    5%

    6%

    14%

    17%

    14%

    16%

    20%

    Increase our use of open source

    Increase the use of enterprise app stores toimprove end user service and support

    Invest in mobile applications for employees,customers, or partners

    Use custom development for better businesssupport and/or differentiation

    Increase deployment and use of technologies

    Upgrade packaged applications to a newer release

    Increase our use of business intelligence, analytics,and decision-support tools and services

    Base: 2,444 software decision-makers

    Source: Forrsights Software Survey, Q4 2012

    BI Tops The List Of Software Priorities For The Next 12 Months

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    2013 Forrester Research, Inc. Reproduction Prohibited 14

    Analytics unlock the value in ERP

    Massive amounts of data collected but many firms are stuck at basic

    reporting / minimal analysis

    Competitive and market dynamics compel firms to invest in better, faster,

    data-driven decisions

    Analytics and BI can unlock the value put information and

    recommendations into the purview of business stakeholders ERP users seek KPIs and best practices from vendors and partners

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    2013 Forrester Research, Inc. Reproduction Prohibited 15

    Mobility extends ERP to real-time data and decisions

    On the go access to data customers,

    employees, inventory

    Real-time updates back into the ERP system

    Rather than waiting for the daily / weekly updates from

    ERP users

    Real-time alerts inform ERP mobile users of newdevelopments

    Change in customer status

    Cancellations or reroutes of appointments

    Manager approvals

    Mobility solutions from software vendors andpartners

    Industry-specific

    Cross-platform, support for multiple devices

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    2009 Forrester Research, Inc. Reproduction Prohibited

    Best practices to maximize value from

    ERP and ERP services partners

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    Forrester's Criteria For Vendor Selection

    Capabilities

    Competency

    Strategy

    Technology

    Methodology

    People

    Specialization(Industry,Domain)

    Relationship

    Cultural Fit

    Innovation

    Results

    Execution

    Case Studies

    Cost

    Innovativepricing models(skin in thegame)

    Pre-built

    solutions /accelerators

    Solutionmodels

    Contractualflexibility

    MarketPresence

    Revenues

    Growth

    FTEs

    Partners

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    Pre-built solutions speed time to value

    Time and cost savings by using

    pre-built solutions and

    accelerators Encapsulated industry best

    practices

    20% to

    30%

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    Clients seek embedded KPIs and benchmarks to drivebusiness value

    Data proliferation creates new

    challenges for clients to drive value outof sourcing information

    Embedded KPIs and benchmarks canprovide new insight by industry, LOB,

    or category

    ERP program managers can givebusiness stakeholders greater value

    more strategic business alignment

    Move from reactive to predictive --identify new opportunities for value with

    the business

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    Critical Internal Factors For Success

    1. Executive buy-in and sponsorship Senior and clearly defined sponsors who can evangelize and drive the change and

    secure funding, from start to finish

    2. Strong governance internal and with partners Daily, quarterly, and annual meetings

    Detailed escalation paths

    Named executives and RACIs

    3. Change management Detailed organizational readiness assessment

    Focus on change management throughout the organization

    Champions as well as drivers

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    Recommendations

    Examine accelerators, tools, and templates that speed time-to-

    deployment and reduce implementation cost and risk. Look for industry and application knowledge relative to your specific

    business needs.

    Look for providers that will bring their own best practices rather thanwork with you to develop procedures.

    Look for client references with similar needs/goals and make sureto interview them

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    Thank you

    Liz Herbert+1 617 613 6011

    [email protected]