integrated business systems: success through change
DESCRIPTION
This is a presentation given in 2008 to CPA Congress in Adelaide. It sumarises the drivers for change - and the threats.TRANSCRIPT
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Integrated Business Systems:
Success through Change
Laz Davila
Director
Davtec IT Pty Ltd
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IT / Software Industry since 1985:
Corporations: 15 years
Small Business: 3 years
Consulting (to both): last 5 years
Anecdotal evidence:
Common sense
Laz Davila: About Me
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Take an old idea
Niche / Renew
Do it better(Technology)
Fresh Thinking. Real Success.
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Enterprise resource planning (ERP):
“an enterprise-wide information
system designed to coordinate all the
resources, information, and activities
needed to complete business
processes such as order fulfillment or
billing.”
Source: Wikipedia.org
ERP – Business Nirvana
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Integrating business processes
“end to end” can:
Save costs (improve efficiency)
Accelerate production (more revenue)
Improve quality and consistency of results
(more happy clients = more revenue)
---
Bottom Line: More Profit
In English?
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Financials
Supply Chain Management
Decision Support
Human Resources
Manufacturing
Projects
Customer Relationship Management
Etc, Etc...
Any two qualifies a product as an ERP
What can you integrate?
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Example ERP Systems
Source: http://hosteddocs.ittoolbox.com/corioerp_survey.pdf
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Complexity
Software
Business
Changes to
work practices
Migration
of Data
Timing “Go Live”
Long Projects - Months to Years
No, really, why is it so hard?
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It’s not about the IT
Source: http://hosteddocs.ittoolbox.com/corioerp_survey.pdf
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Let’s tackle the issues: Requirements
Source: Lego TM
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Balance how ERP system has been
designed to work against how the
business works
And how does the business work?
Standardising to ERP processes can lead
to loss of competitive advantage
Compromise – edit/develop modules
or interface to existing methods
More on Requirements
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Senior staff less happy to change
Beware separate, independent
divisions with their own processes
Stovepipes and niche tools (e.g. Excel)
Resistance to change
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Design and implementation needs
key business resources
So who does their day job?
Guideline cost of customisation:
Medium: 2 x User Licence fees
Large/Multiple Sites: 3 to 5 x User Licence
fees
Inadequate Resources / Time / Budget
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Incompatible software with business
processes
Poor project design / management
Poor ERP Package selection
Use of Consultants
Can do it better
in house...
Well, maybe it *is* the IT
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Cost and Schedule Overruns happen
Half pregnant
Eli Lilly SAP
implementation
example:
From:
4 year x 70 people
To:
6 year x 100 people
[A success story]
Knowing everything we know...
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Insufficient Training
Poor system performance
Inadequate support
Surviving ERP Shock
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Dirty Data building up over time
Garbage in / Garbage out
Blurring
accountability /
lines of responsibility
and morale
No time to rest...
And we live happily ever after
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2004 ITtoolbox ERP Implementation Survey
Sponsored by Corio
http://hosteddocs.ittoolbox.com/corioerp_survey.pdf
Eli Lilly: Leveraging SAP XI in Your Landscape: Costs, Benefits, Lessons Learned
Timothy S Yates, Scott A Sanneman
2007 ASUG National Conference
Why Erp? a Primer on SAP Implementation
F Robert Jacobs, David Clay Whybark
McGraw-Hill/Irwin, 2001
Changing the Way We Manage Change
Ronald R. Sims
Greenwood Publishing Group, 2002
Photos: http://www.sxc.hu
Bibliography / Credits
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For further information, please contact:
Laz Davila
davtec
321 Portrush Road
Toorak Gardens SA 5065
Ph: (08) 8333 3440
Mob: 0402 452 529
http://www.davtec.com.au/