1 / 28

ALEX BOTTAUSCI MARK LEMOINE YOUSEF MADANI

ENTERPRISE RESOURCE PLANNING AT . ALEX BOTTAUSCI MARK LEMOINE YOUSEF MADANI. John Molson School of Business – C oncordia University November 23 rd , 2012. AGENDA. COMPANY BACKGROUND ENVIRONMENT ANALYIS ERP & THE ORACLE DECISION CHANGES TO IT GOVERNANCE

menefer
Download Presentation

ALEX BOTTAUSCI MARK LEMOINE YOUSEF MADANI

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. ENTERPRISE RESOURCE PLANNING AT ALEX BOTTAUSCI MARK LEMOINE YOUSEF MADANI John Molson School of Business – Concordia University November 23rd, 2012

  2. AGENDA • COMPANY BACKGROUND • ENVIRONMENT ANALYIS • ERP & THE ORACLE DECISION • CHANGES TO IT GOVERNANCE • CHANGES IN OPERATING MODEL MECHANISIM • THE IT SAVVY JOURNEY • EVALUATION OF ALTERNATIVES • RECOMMENDATION • CONCLUSION

  3. COMPANY BACKGROUND • Public company • One of world’s leading engineering & construction firms • Founded in 1911 • Headquartered in Montreal • 28,000 employees • Offices in over 35 countries • On-going projects in over 100 countries: • Buildings, bridges, roads, mass transit, mining, power plants, etc. • Growth has come from M&A’s • Total Revenues of $7.2B in 2011 • Net income of $378M

  4. ENVIRONMENT ANALYSIS Strengths Recognizable brand and great reputation Global presence Historically solid financial results Resources to tackle big projects Specialist in enviro-construction Weaknesses Excel is the default tool for reporting Low data visibility and/or accessibility M&As created internal lack of control Decentralized: Divisions make own decisions & compete between one another Highly complex IT environment from M&As Opportunities Large markets remains to be exploited Few competitors operate in certain potentially unstable countries, such as Africa Growing market in sustainable construction Threats Regulatory & statutory reporting changes More sophisticated money laundering & fraud Other big competitors Operations in politically unstable areas

  5. WHY AN ERP SYSTEM? Improving IT systems can help SNCLavalin combat weaknesses & threats while taking advantage of strengths & opportunities • Drastically improve on Excel’s limitations • Improved internal financial controls • Reduce money laundering and fraud risk • Improved centralization and control of data and information • Decentralized business units can share more info more efficiently • More flexibility vis-à-vis regulatory & statutory changes • Supporting one system will be less costly and easier to maintain • One system would unite the divisions and encourage common vision & behaviour between them

  6. THE DECISION • SNCLavalin studied many systems Oracle or SAP • Oracle & SAP are robust enough to handle its international operations • Oracle is a better fit as it allows modifications • Oracle has many products & services - hardware, software and consulting • Oracle offers several ERP applications: E-Business Suite • Oracle’s E-Business Suite has 50 modules • SNCLavalin chose 16 modules with intent to implement more in future

  7. HISTORY OF THE PROJECT Go Live - May 2010 3 Canadian Divisions Encountered problems 2 Canadian Divisions Per Quarter Oracle Chosen BOD endorses ERP 2010 2008-2009 2007 2011 2011-2012 Team Studied Various ERP Systems Implementation Began 2ndGo Live - April 2011 1 Canadian Division

  8. E-BUSINESS SUITE AT

  9. DATA FLOW WITH Forecasts vs. Actual

  10. INITIAL IT GOVERNANCE BEFORE THE PROJECT X X X X X

  11. INITIAL CHALLENGES OF THE PROJECT Lack of clear directives and support from senior management Lack of training for business units Certain key functionalities missing- i.e. B.I.

  12. CHANGES MADE TO IT GOVERNANCE • 2010 KPMG recommends restructuring the Oracle implementation process • V-P ERP position is created and is responsible for the implementation process • Oracle Steering Committee is created • CFO, CIO, CHR and senior leaders report to BOD and CEO • Other corporate divisions (i.e. HR & Finance) now more involved; they meet each month to share feedback and suggestions

  13. IMPLEMENTATION TEAM Steering Committee CFO, CHR, CIO & Senior Dir.

  14. CURRENT IT GOVERNANCE PROJECT X X X X X X X X X X

  15. vs. TOP 3 IT GOVERNANCE MODELS

  16. CURRENT CHALLENGES OF THE PROJECT Lack of clear directives and support from senior management Steering Committee Created + V-P ERP Lack of training for business units Comprehensive training Certain key functionalities missing- i.e. B.I. Customization of features but B.I. & data mining still are issues

  17. CURRENT OPERATING MODEL MECHANISIMS: DIVERSIFICATION • Standardization • LOW • Different software systems at local sites • Decision making is localized at each site • This is due to M&A • Integration • LOW • Many international sites – data is not being shared

  18. FUTURE OPERATING MODEL MECHANISIMS: UNIFICATION • Standardization • HIGH • One standard software at all sites • Strong centralized governance for IT • Integration • HIGH • Share data across international sites • Via BI module which will make data mining easy

  19. JOURNEY : STANDARDIZING Localizing : Realized that IT costs too much Standardizing: Shared data and reduced IT costs

  20. TWO ALTERNATIVES Eventually both need to be done … but which first? 1 – International Rollout 2 – Enhance Current Solution Goal – 1 global system Replace multitude of systems 35 countries • Software Oracle upgrade recommended every 2 years • New modules to consider – e.g B.I.

  21. CHALLENGES & BENEFITS 1 - International Rollout 2 – Enhance Current Solution • Language • Culture • Training • Legal/fiscal/tax consideration • Data conversion • Senior management not convinced enhancements are necessary • Integrating new modules is highly complex and costly • Higher user acceptance • Improved functionality • Better data mining capabilities • Less bugs • Service level agreements with Oracle up-to-date • One system worldwide • Improved internal controls • Data visibility & mining • Simplified financial reporting

  22. RISK ASSESSMENT 1 - International rollout 2 – Enhance Current Solution • User acceptance low if key features are missing • Team inexperienced with international rollout • Data conversion issue: • Canada (80%) = one system (JCS) • World = various systems (i.e. Accpac, Peachtree) • Delays global rollout – another year or two with limited control over foreign offices Less than perfect functionality Lack of data mining capabilities More bugs Service level agreements with Oracle not up-to-date Limited control of foreign offices Loss of financial control – i.e. $56m missing! SNCLavalin committed to investors to upgrade

  23. RECOMMENDATION Alternative 2  Enhance Current Solution • Enhance current system • Higher user acceptance • Improved functionality • Better data mining capabilities • Less bugs • Up-to-date service level agreements with Oracle • Implement new module  B.I. will increase data mining flexibility • Easier to manage one site for up grades instead of 35 countries • Rollout mayhave risks associated with it • Enhancement is a guarantee to have risks

  24. PROJECT TIMELINE Total IT Team includes 50 people

  25. PROJECT BUDGET

  26. CONCLUSION • SNCLavalinhas come a long way • It still has a long way to go • Improvements to Governance are complete • We recommend enhancing certain solutions for reasons mentioned earlier

  27. THANK YOU! ALEX BOTTAUSCI MARK LEMOINE YOUSEF MADANI John Molson School of Business – Concordia University November 23rd, 2012

More Related