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Putting the Enterprise into the Enterprise System

Thumbs Up Consulting. TUC. Putting the Enterprise into the Enterprise System. by Thomas H. Davenport. Shirley Justice, Trang Le, Brad Lucas, Corey Pincock, Brian Reich. Thumbs Up Consulting. TUC. Agenda. Allure of Enterprise Systems Scope of Enterprise System

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Putting the Enterprise into the Enterprise System

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  1. Thumbs Up Consulting TUC Putting the Enterprise into the Enterprise System by Thomas H. Davenport Shirley Justice, Trang Le, Brad Lucas, Corey Pincock, Brian Reich

  2. Thumbs Up Consulting TUC Agenda Allure of Enterprise Systems • Scope of Enterprise System • Anatomy of Enterprise System When System and Strategy Clash • Configuring Enterprise System Impact on Organization Role of Management Case Study: Doing It Right at Nike • Critical Success Factors

  3. Thumbs Up Consulting TUC Allure of Enterprise Systems • A solution to the fragmentation of information in large organizations • Multiple Data Repositories • Legacy Systems for Each Function • Productivity and Performance Drag • Maintenance Leads to High Costs

  4. Thumbs Up Consulting TUC Scope of Enterprise System Financials Operations & Logistics A/R & A/P Asset Accounting Cash Mgmt & Forecast Cost-Center Accounting Executive Info System Financial Consolidation General Ledger Product-Cost Acctg Profitability Analysis Profit-Center Acctg Period-Related Costing Inventory Mgmt MRP Materials Mgmt Plant Maintenance Production Planning Project Management Purchasing Quality Management Routing Management Shipping Vendor Evaluation Sales & Marketing Human Resources Order Management Pricing Sales Management Sales Planning HR Time Accounting Payroll Personnel Planning Travel Expenses

  5. Thumbs Up Consulting TUC Anatomy of Enterprise System Managers and Stakeholders Reporting Applications Financial Applications Sales and Delivery Applications Sales Force & Customer Service Manufacturing Applications Back-Office Administration Central Database Suppliers Customers Service Applications Inventory and Supply Applications HR Mgmt Applications Employees

  6. Thumbs Up Consulting TUC When System & Strategy Clash • Challenges • Business must be modified to fit the System • Vendors structure systems to reflect “Best Practices,” not the Customer • Some degree of customization • Investment: ranging from $50m to +$500m • Benefits Realization • Alignment • “SAP isn’t a software package; it’s a way of doing business.” • Competitive Advantage - Integration

  7. Thumbs Up Consulting TUC Configuring Enterprise System • Modules • For each function, there is a module to install • The customer picks which ones to install • Generally, the more modules, the greater the integration • Configuration Tables • Enables adjustments to the system to achieve best possible fit with your company’s processes

  8. Thumbs Up Consulting TUC Impact on Organization • Company Strategy • Streamlines Management Structure • Centralization of Information • Culture • Standardization of basic business transactions • Integration-enabled flexibility • Transparency • Organization • Global alignment

  9. Thumbs Up Consulting TUC Role of Management • Weigh ES implementation with its cost and complexity • Ensure the company addresses all business implications • Management Questions • Strengthen our competitive advantages? • Erode our competitive advantages? • Effect on organization and culture? • Extend to all or some functions? • Global roll-out or Regional roll-out? • Other alternatives to ES?

  10. Foreign Trade Vastera Planning i2 Operations SAP HR People Soft Sales Siebel Thumbs Up Consulting TUC NIKE • Over 100 legacy systems throughout our global infrastructure • Global Function leaders to create “Future Vision” • Business Systems 1st ; Business Processes 2nd • Vision Strategy “Change the Game” Picked best in class partners to create a competitive strategic advantage • Planning 5 years; Implementation 5 years • Phased Implementation Approach • Canada; USA; EMEA; APAC; Americas • Organizational & Cultural Changes Resources Time Scope

  11. Thumbs Up Consulting TUC Critical Success Factors • System & Strategy Alignment • It’s a way of doing Business • Integration and Transparency • Extensive Planning & Implementation • Short, Mid, and Long-Term Plans • Risk Mitigation • Functional Experts to Lead the Charge • Understand Organizational Impact • Systems, Processes, Culture, People • Functional Experts to X-Functional Experts

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