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SAP End User Competency
They Drive the Business Processes
That Drive Your Business Performance
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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 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
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ERP Clients Look into the Mirror
Perceived Responsibility for Problems with ERP Implementation
Number
Answering
Our Own
Organization
Software
Vendor
Systems
Integrator
Don't Know
There was no quantifiable measurement of
business benefits derived from implementation
59
69%
12%
10%
8%
We had insufficient knowledge transfer
56
34%
20%
36%
11%
After go-live, we broke up the implementation
team and left IT to support the installation
55
82%
9%
0%
9%
We shortchanged end user training due to time or
budget limitations
51
78%
6%
10%
6%
We over-customized the software rather than
adopting inherent business practices
47
74%
4%
21%
0%
Little or no planning was given to postimplementation support
40
55%
5%
33%
8%
We under funded the project and finsihed late and
over budget
31
74%
13%
10%
3%
We failed to manage scope
30
73%
0%
17%
10%
We have too many versions or instances to
manage and are not getting integration as planned
21
52%
19%
19%
10%
Q36.Who do you believe is most responsible for the problems you experienced with your base ERP
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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?
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End User Attrition
Source: U.S. Department of Labor
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End User Scenario
Year 0
Go
Live
Year 1
Year 2
Change to
Business Process
Expert
Functional
Version
Upgrade
Initial
Training
More Change to
Business Process
/Attrition
Degraded
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Training Plans Presume Short-term
Utilization
 Training budgets
are based upon
Day 1: The End of the Beginning
Planning View: the ERP wedding
pre-ERP cycles
 Training budgets
seldom include
repeat or
continuous
training
Client Reality: the ERP marriage
1-3 Years
Investment scope
15-22 Years
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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
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Dedication to User Training
Source: META Group “TCO of ERP”, 2003
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?
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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.
Failing
Our end users are struggling
to make use of the software
13%
12%
64%
Sub-Standard
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?
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Refresher and periodic re-training lead
directly to competency gains
Highly Competent +
Competent
13%
Sub-standard +
Failing
11.1 %
6%
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
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SAP Training Resource
 SAP
 Dedicated third-party SAP trainers
 Super users
 SI’s
 LMS software
 Simulation software
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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-thetrainer technique as opposed to 65%
of the other firms
 90% combine internal staff with
Third Party or Vendor-supplied
training
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Worst practices
 One-time end user training
 Ongoing user trains the user
 No outside training resource
 No competency measurement
 No simulation
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For post-implementation training
support, successful firms…
engage dedicated outside trainers, not independent consultants
Instructor Mix
Highly Competent +
Competent
ERP vendor-supplied
20%
Third-party ERP training 10%
Third-party systems integrator 15%
Independent consultant
5%
Internal staff 90%
45%
Sub-standard +
Failing
17%
13%
5%
24%
78%
35%
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The ROI of End User
Competency
Profit & Loss
Key Performance Indicators
 End user “functions”
drive the business
processes that drive
business
performance
 Alice in Wonderland
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
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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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Break sponsored
by
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Audience Response
Question?