Proposal for the Implementation of an ERP

System at DBSA Group 6

The DBSA Business ModelBased on Osterwalder model

DBSA MandateTo provide development finance

Strategic objectiveTo drive development impact in the region through expanding access to development finance in order to alleviate poverty

IT strategyThe Bank will provide a comprehensive suite of enterprise wide IT applications to meet all information needs for delivering the Bank’s strategic objective

Identifying the Gaps: SWOT analysis STRENGTHS WEAKNESSES

What DBSA does well

Well acquainted with the industry

Unique resources

Capital intensive

Experienced labour force

Strengths seen by others

Contributor to SA economy

Financially stable

Affiliated to international organisations

What can be improved

Understanding of need for increased customer awareness

What to avoid

Low quality product or compromise on quality

What could be marketing weaknesses

DBSA is presently not aggressive in marketing

Factors that can lose sales

Customer complaints

Inconsistent service delivery

Slow decision making processes

Disparate systems could lead to incorrect reporting

Good opportunities open to DBSA

SADC market

Trends to take advantage of

Increase in development/infrastructure needs

Faster/Improved ERP systems available in the market

Up-skill of current IT resources

Strengths that can be turned into opportunities

Create new markets e.g. Blue Oceans Strategy

Trends that can harm DBSA

Recessions

Competition activities

Competing with the large commercial banks on pricing

Threats due to weaknesses

Low understanding of the increased need for customer satisfaction may result in reduced quality of output

Failure to deliver on service level agreements (SLAs).

Existing IT Infrastructure – most integrated system is outdated. Certain operations are performed outside the system

OPPORTUNITIES THREATS

System Selection/Requirements

• Bank’s performance objectives:– cost, speed, dependability, flexibility and quality

• Bank requires integrated environment• To deliver strategy with agility and flexibility

• Integration results:– Automation of business processes– Standardised processes across the bank– Efficient business operations

• Reduced business development and service delivery lead times• Increased customer satisfaction

• Can any of the existing systems replace all other systems?– NO

Current Situation: Disparate Systems

Excel

Spreadsheets

CORE

CURA

People Soft

Oracle Financials

‘Different Versions of the Truth’

?

Is ERP the Solution?•What is ERP?

•ERP attempts to integrate all departments and functions across a company onto a single computer system that can serve all those different departments’ particular needs

•Additional advantages of implementing ERP•Elimination of costly, inflexible legacy systems•Improvement of work processes•Upgrade of technology infrastructure

•Is ERP the solution?•YES

Single Computer System

Ideal System for DBSA?

DBSA SYSTEM ANALYSIS

Source: Technology Evaluation Centre [online]

Implementation & Risk AssessmentSelected Critical Success Factors

Risk MitigationLack of Employee/Business buy-in

Involve managers at all levels in developing processes and solutions,

Train users,

Monitor and support post implementation

Risk that the wrong solution is selected

Fully assess business requirements and processes (gap analysis, detailed requirements specification).

Involve all stakeholders.

Lack of technical skills Train internal resources if time permits.

Outsource specific function with a view to implement long term contracts or to acquire the requisite skills through a skills transfer mechanism.

Lack of technology platform

Engage technology partners in all decision-making to procure required the technology platform.

Changing business needs during implementation

Continuous assessment of needs with proper design freeze stages will be required.

Changed needs to be assessed for their impact and if severe, the phased approach should assist in accommodating such changes.

Budget dis-approval by National Treasury

Proper planning and involvement of senior management will ensure this risk is minimized.

An (RFP ) process will also provide certainty as to the budget requirements and ensure speedy approvals.

• Appropriate business & IT legacy systems

• Comprehensive change management program

• Communication at all levels• Proper data management

• Effective ERP strategy & Implementation methodology

• ERP teamwork & Appropriate team composition

• Appropriate ERP vendor selection

• Product champions across the organisation

• Top management support

• Good fit between business & processes

• Avoidance of customization

Thank You