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SAP End User Competency

SAP End User Competency. They Drive the Business Processes That Drive Your Business Performance. Research Sources. META Group “TCO of ERP” META Group/RWD Technologies: End User Competency META Group “The State of ERP Services 2004-2006” Various other META Group research sources.

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SAP End User Competency

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  1. SAP End User Competency They Drive the Business Processes That Drive Your Business Performance

  2. Research Sources • META Group “TCO of ERP” • META Group/RWD Technologies: End User Competency • META Group “The State of ERP Services 2004-2006” • Various other META Group research sources

  3. SAP Disappointment • While the beat of the ROI drum around ERP is incessant, most firms with ERP investments have their heads turned in wrong direction. • Integration • Extended applications (CRM, SCM, et al) • ROI-related anything

  4. ERP Clients Look into the Mirror

  5. Audience Poll • How many of you are in firms that have had SAP for more than 2 years? • How many of you have had any substantial form of repeat or continuous SAP end user training? • How many rely on user-trains-the user?

  6. End User Attrition Source: U.S. Department of Labor

  7. Go Live Change to Business Process Expert Functional Version Upgrade Degraded More Change to Business Process /Attrition Initial Training End User Scenario Year 1 Year 0 Year 2

  8. Training Plans Presume Short-term Utilization • Training budgets are based upon pre-ERP cycles • Training budgets seldom include repeat or continuous training Day 1: The End of the Beginning Planning View: the ERP wedding Client Reality: the ERP marriage 15-22 Years 1-3 Years Investment scope

  9. ERP Issues Executive Reporting End User Competency Functional Integration Application Mtc Costs Financial Integration Business/IT Alignment Architecture Other -20% -10% 0%/Midpoint 10% 20% Respondents could choose multiple pain-points. The average % of pain points cited was 38% which represents the midpoint. This graphic shows the relative response variance from midpoint. Query of 124 firms with ERP installed

  10. Dedication to User Training Source: META Group “TCO of ERP”, 2003

  11. Optimal ERP End User Competency • How competent are your ERP users? • Do they take full advantage of ERP functionality? • Did they receive adequate initial training? • Do they receive continuous training? • Do they adequately drive the business processes?

  12. 76% of Firms Polled Face User Competency Challenges Highly Competent 11% Our end users have the ability to perform their jobs more effectively due to competency in using the application and knowledge of how it supports our processes. Competent Our end users fully understand the software and are able to gain full benefit of its functionality. 13% 64% Failing 12% Sub-Standard Our end users are struggling to make use of the software Our end users have a sufficient understanding of the software but are not gaining full benefit of its functionality How competent are your end users?

  13. 11.1 % Refresher and periodic re-training lead directly to competency gains Sub-standard + Failing Highly Competent + Competent 6 % 13% 22 % 56% 37 % 65 % All end users receive refresher training on a regular basis Relevant end users receive training whenever there are major system changes or upgrades No training provided

  14. SAP Training Resource • SAP • Dedicated third-party SAP trainers • Super users • SI’s • LMS software • Simulation software

  15. What practices are applied by the 24% of firms with competent end users? • 83% (During implementation) instituted a comprehensive training plan as opposed to 22% of the firms with sub-standard competence • 81% employed trainer-trains-the- trainer technique as opposed to 65% of the other firms • 90% combine internal staff with Third Party or Vendor-supplied training

  16. Worst practices • One-time end user training • Ongoing user trains the user • No outside training resource • No competency measurement • No simulation

  17. For post-implementation training support, successful firms… ERP vendor-supplied Third-party ERP training Third-party systems integrator Independent consultant Internal staff engage dedicated outside trainers, not independent consultants Highly Competent + Competent Sub-standard + Failing Instructor Mix 17% 13% 5% 24% 78% 20% 10% 15% 5% 90% 35% 45%

  18. Profit & Loss Key Performance Indicators • Sample Business Performance KPI’s • Return on sales • Return on assets • Net sales per employee • Ratio of Assets/Liabilities Business Process Drivers Sample Major Business Processes Order Fulfillment Process Procurement Process Production Process ERP User Competency The ROI of End User Competency • End user “functions” drive the business processes that drive business performance • Alice in Wonderland

  19. META Group Advisory • Develop a continuous training program • Mix qualified outside training resource with dedicated internal resource • Monitor end user competency with an eye on business benefit Bottom Line: End users drive your business processes every bit as much as does the software

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  21. Hosted by Audience Response Question?

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