Industry specific cover image Oracle Insight & How To Drive Value From Your ERP Investment Simon Threlfall Senior Director, Industry Strategy & Insight

Industry specific cover imageIndustry specific cover image

Oracle Insight & How To Drive Value From Your ERP Investment

Simon ThrelfallSenior Director, Industry Strategy & InsightPublic Sector, North America

Mar 2013

Insight information, including this Oracle presentation, is the confidential, proprietary information of Oracle, is intended solely for your internal business use and shall not be disclosed to third parties without Oracle’s prior written consent.

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What is Oracle Insight?A consultative approach to helping customers resolve critical business issues that leverages Oracle’s deep skill set & experience

Oracle Insight

A selective, free-of-charge program offered to strategic Oracle accounts Reports to the President of Oracle as part of the Industries Business Unit (IBU) Focuses on the identification, quantification, and communication of value to

customer executives

+ +

Industry Experience

Solution Knowledge

Project Mgmt

Value Analysis

++

Functional Knowledge


Oracle Insight Has Assisted Customers In All Stages Of The Technology Investment Lifecycle

Accelerate Technology Transformation by Aligning

Project & Business Objectives

Align and Measure Technology Initiatives Against Planned

Objectives

Establish a Roadmap & Business Case for

Modernization Effort

Unlock More Value from Technology Investments

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Full ERP LifecycleInsight process designed to help customers progress through this lifecycle; thereby driving maximum value out of their investment in ERP

Timeline

Per

form

ance

Baseline

Go-Live

Efficiency

EffectivenessSolution

Transformation

ProcessesStabilization

Adding Functionalities

BusinessStrategy = BI

Implementation

Stage 2

Source:Deloitte Consulting

Stage 3 Stage 4Stage 1

Most organizations report a decline from baseline performance during the initial stage after going live


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Market Research Suggests Organizations Can Achieve Significant Benefits From Modern ERP Solutions

“By moving to a single ERP system for Finance and at the same time implementing consistent data and technology standards, companies can cut the cost of finance operations by 23%.” Hackett Group

“Research has found that adopters of e-Sourcing could negotiate a 14.3% avg reduction in goods & services costs, cut sourcing cycles in half and reduce sourcing administration costs by nearly 60%.” Aberdeen Group

“World class purchasing organizations have 48% less staff and 30% lower costs than average purchasing organizations.” Hackett Group

“Organizations can typically count on a 20% to 25% reduction in HR administration staff when they move to a modern, integrated, self-service HR platform.” Hackett Group

“Organizations can typically count on a 20% to 25% reduction in HR administration staff when they move to a modern, integrated, self-service HR platform.” Hackett Group


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Time & Attendance Cost per Employee

Benefits of Modernizing Time & Labor Functions

Median World Class$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

$42.00

$7.00

Time & Attendance FTE's Per 1,000 Employees

83% reduction

Median World Class0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8 0.700000000000001

0.1

86% reduction

Time & Attendance, Error Rate in Records

Median World Class0%

1%

2%

3%

4%

5%

6%

5%

1%

80% reduction

Hackett Group: 2008 Book of Numbers - HR Transformation and the Quest for Strategic Enablement


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The Impact on IT Support Organizations

Source: CedarCrestone 2009–2010 HR Systems Survey: HR Technologies, Deployment Approaches,Value, and Metrics 12th Annual Edition

IT FTES SUPPORTING HRMS, PAYROLL & HR APPLICATIONS

Legac

y Poin

t Solu

tions

Moder

n Inte

grate

d ERP S

olutio

n

5.3

2.357% reduction in IT staff


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1. Customizing ERP system to match legacy processes & procedures

2. Lack of continued governance & leadership after “Go-Live”

3. Inadequate focus on change management / end-user training & adoption

4. Only implementing core transactional systems

5. Moving down a “point solution” path to fill capability / functionality gaps

6. Lack of emphasis on measuring performance

Common Mistakes Organizations Make That Inhibit Their Ability to Drive This Value From Their ERP Investment


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• Oracle has found that many organizations that heavily customize their ERP systems end up re-implementing with a mandate to “go vanilla”

• Therefore, organizations should do whatever they can up-front to minimize customizations to their ERP systems

• Organizations should re-engineer legacy processes & procedures (where legislatively possible) to match the pre-delivered, best practice processes in the ERP system

• The earlier organizations begin the change management effort the earlier they will achieve benefits promised by modern ERP systems

• “Going vanilla” enables organizations to more easily take advantage of best practices made available in future versions

Solution: “Go Vanilla”

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• The mission of an ERP CC is to progress the organization through the ERP lifecycle & drive maximum value from investment in ERP

• Organizationally, an ERP CC is a permanent, stand alone dept., headed by a Director-level position, aligned under the CFO, COO or CIO

• Staffed with functional/business unit SMEs

• Gartner has found that…”companies with ERP CCs have shown dramatic decreases in consulting costs for each additional project and have the ability to support many more concurrent users per support FTE.”

Solution: Transitioning to a Best Practice ERP Competency Center (CC) Support Structure

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Solution: Invest in Change Management Services & Training Material & Delivery Technology

• Invest in change management & training consulting services

• Leverage training technologies that streamline the development & delivery of training material

• Many ERP vendors provide pre-built process flow content that can be leveraged during an implementation project to train SMEs, before “Go-Live” to train end-users, and at any time a new hire starts & needs get up to speed on how to do things

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Solution: Focus on Administrative, Delivery, & Performance Excellence

Impact

Value

Low High

Low

Drive Core Administrative

Efficiency

“Comply”

Drive Workforce

Efficiency

“Align”

Drive Organizational

Effectiveness Through Analytics

“Elevate”

PERFORMANCEAnalytics, Measurement, Performance Improvement

Tools that fully bridge data to organizational strategy – serve to manage and improve performance and impact the core mission

DELIVERYSelf Service, Service Center, Portal

Tools that directly connect employees and managers with the information and knowledge that they require

ADMINISTRATIVECore transactional systems

Core Foundational Components for data management and process management

Focusing on and achieving all three levels of excellence is

imperative to the overall success of an ERP modernization effort

Traditional ERP Business Intelligence

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Solution: Fill Key Capability Gaps by Implementing “Pre-Built, ERP-Based” Solutions

• Over the years ERP vendors have made significant investments in advanced functionality/capabilities

• From a functionality perspective, many of these systems are on par with “best of breed” systems, but have the additional benefit of being pre-integrated to the ERP system

• Mainstay Partners (2004)1 found that:

– Consolidated systems drive faster implementation times of up to 50%

– 20% to 50% lower implementation and upgrade costs via consolidated infrastructure

– 20% to 70% reduced IT headcount by consolidating systems

– 25% increased uptime via consolidated infrastructure

• Gartner (2006)2 found that…“running an integrated system usually costs less due to a single technology platform, lack of interface costs, easier support, and lower training costs for both IT and end-users.”

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1Mainstay Partners ROI Study, 20042Integrated Financial and Human Capital Management Applications Make Sense, but Not Always, Gartner Consulting, April 2006


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Solution: Identify KPIs & Actively Measure Progress

• Before any organization implements an ERP system it should identify a set of standard KPIs for each area

• Baseline the organization’s performance & identify a set of realistic improvement targets for each line of business

• At periodic times after “Go-Live” measure organization’s performance

• Continually compare performance to baseline measures, and hold managers accountable

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Questions?

Documents

Industry specific cover image Oracle Insight & How To Drive Value From Your ERP Investment Simon Threlfall Senior Director, Industry Strategy & Insight