Hosted by Enterprise Applications Center of Excellence A
Hosted by Enterprise Applications Center of Excellence A Maturity Model Michael Doane META Group
Hosted by Why an ERP Center of Excellence? l An optimization of business processes that drive business benefit continually l An optimization of end user competency and employee fulfillment of business processes l Continued coherence and integration of functionality and data through all process chains
Hosted by Center of Excellence Functions Business To Be Prepare the company for transformational change (all the time) Continuous business improvement As Is Optimization of current system usage Maintenance and support of ERP and related functions (ERP/CRM/SCM) IT Parameters: Business Applications Span (ERP is the backbone)
Hosted by l It is imperative to link end users to profit & loss l Without measurement, you cannot begin l Business process improvement is the source of measurable business improvement l IT also has its ‘business processes’: reduction of IT costs applies to this value chain Profit & Loss Key Performance Indicators Sample Business Performance KPI’s 8 Return on sales 8 Return on assets 8 Net sales per employee 8 Ratio of Assets/Liabilities Business Process Drivers Sample Major Business Processes Order Fulfillment Process Procurement Process Production Process SAP User Competency Software The Enterprise Applications Value Chain
Hosted by Foundation of Organization Planning l Two aspects of “IT” • Business-specific activities = the Center of Excellence • Infrastructure/support ~ “Foundation Services” IT Resource/ Governance Infrastructure/ Operations Center of Excellence Architecture
Hosted by Enterprise Program Management Remote Process Owners Process Oversight Users Users Help Desk Continuous Education Functional Oversight Continuous Education Finance Sales Logistics Production Software Configuration & Support Custom Applications Integration Management (Functional, Cross-Application) Integration Management (Technical) Multi-site Virtual Co. E Production Control/Change Management
Hosted by META Group Maturity Modeling Levels 1 -5 Elements or best practices (weighted) Up to 10 per maturity level Categories METAmap (META Group Maturity Assessment Program)
Hosted by Center of Excellence Maturity Model Level 1 Core ERP 2 Stable ERP 3 Co. E Defined Business/ IT Alignment Enterprise Applications End Users Infrastructure There is a link between business and IT for configuration updates. ERP is not overly customized; core implementation is complete Basic end user training is complete. ERP infrastructure is adequate. The role of business in ERP evolution is defined. ERP is the backbone of enterprise applications. Applications interfacing is complete. End users fulfill ERP functions without excessive help desk or support. ERP infrastructure is stable. Business has active ownership of business processes. Current KPI is measured. The applications portfolio is inventoried. End users receive periodic refresher training ERP infrastructure is flexible. Apps data is generally synchronized. The applications portfolio has been rationalized. End users are trained to business processes and continuous training is in place. Enterprise applications infrastructure is flexible. The applications portfolio has been optimized. End user job performance is linked to business process performance Enterprise applications infrastructure is adaptive to applications changes. KPI measures and targets are in the system. EPMO directs 4 Co. E Managed business process transformation. 5 Co. E Evolving Business process change is guided by KPI performance and configuration is in the hands of business.
Hosted by The Consequences of Implementation Concerns Pre Implementation Mistakes Noted After Implementation • Scale 1=Unimportant, 5=Very Important Source: The State of ERP Services Multi-Client Study, META Group 2003
Hosted by Do you have some form of a Co. E? 1. Yes 2. No
Hosted by Level 1 Core ERP l ERP is at the center of an applications portfolio l The elements for this level are generally identical to those of a successfully completed implementation l It is imperative to keep the project team intact and ready for transfer to the Center of Excellence
Hosted by Level 2 Stable ERP l Most new ERP installations take 3 to 4 months to achieve a state of stability l In this period, project staff transitions to the Center of Excellence
Hosted by Level 3 Co. E Defined l After stabilization of ERP, the Center of Excellence is functional l Attention turns to measures & benefits
Hosted by Level 4 Co. E Managed
Hosted by Level 5 Evolving Co. E
Hosted by End Users
Hosted by Business/IT Alignment
Hosted by Infrastructure
Hosted by Enterprise Applications
Hosted by Results by Maturity Elements Results by Category
Overall Results METAmap (META Group Maturity Assessment Program) Hosted by
Hosted by Of those who have a Co. E, which level have you attained? 1. 2. 3. 4. 5. Core ERP Stable ERP Defined Co. E Managed Co. E Evolving Co. E
Hosted by Keys to Co. E headcount control: 1. Support given to Business Process Owners 2. Direct software configuration by Co. E (business-led) 3. Active competency management/continuing knowledge transfer
Hosted by Conclusion/Recommendations l The Co. E must be led by business staff and business concerns (measurable) l A Co. E will be sustained if measurement and business benefit are at the foundation • People/processes tend to decay through time l Maturity is accelerated when benefits are achieved
- Slides: 24