Building the ERP Business
Case
SUMMER 2005
JUNE 6-10 2005
Initial Need
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How does the company feel the need for an
integrated system?
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Existing problems
Future plans
The competition
Customer Demand
IST 600 ERP Systems: Key Implementation Issues
U. Yeliz Eseryel
Potential Analyses
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SWOT Analysis
GAP Analysis
Elevator Speech
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What is the product/service/solution?
Problem it addresses
What does it do?
How does it work and it benefits
IST 600 ERP Systems: Key Implementation Issues
U. Yeliz Eseryel
Sample Elevator Speech
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Implementing SAP will allow the R&D group to accelerate the group’s
growth 1-2% annually through the streamlining of the new product
development process. It is possible because SAP integrates the
design, engineering and manufacturing processes which were
historically disparate systems. The system integration will allow us to
reduce development costs, reduce engineering changes, reduce
prototyping, reduce labor requirements through improved integration
and resource planning. We will also benefit from improved
productivity through better processes. In addition, SAP provides tools
we didn’t previously have for managing the product development
process which will allow us to reduce our cycle times by being able to
reuse parts, modules, lessons learned by previous product
introductions. All of these will allow us to accelerate growth by 1-2%
annually.
IST 600 ERP Systems: Key Implementation Issues
U. Yeliz Eseryel
Executives-Identify Top 3 Items
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Improvement opportunities (provides)
Benefits (triggers)
Benefit Category (achieved)
Implementation Plan (measured)
Metrics
IST 600 ERP Systems: Key Implementation Issues
U. Yeliz Eseryel
Executives-Identify Top 3 Items
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Improvement opportunities (provides)
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Benefits (triggers)
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Decrease COGS
Implementation Plan (measured)
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Improved time to market reduces the development cost and
reduces engineering changes
Benefit Category (achieved)
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Integration b/w engineering and design systems
Develop future state process through integration
Metrics
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Profit margin per new product development
IST 600 ERP Systems: Key Implementation Issues
U. Yeliz Eseryel
Next Step
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Link these to Strategic Objectives
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% Sales generated by NPD
Average Profit margin
Budget vs Actual
Performance vs schedule
Defects per unit
Out of box failure
IST 600 ERP Systems: Key Implementation Issues
U. Yeliz Eseryel
Keep in Mind
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Business objectives
Critical Success Factors
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First to market
Key Performance Indicators
Benefits for each of the areas.
IST 600 ERP Systems: Key Implementation Issues
U. Yeliz Eseryel
Example
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See handouts.
IST 600 ERP Systems: Key Implementation Issues
U. Yeliz Eseryel
Practice
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Team Breakout session
IST 600 ERP Systems: Key Implementation Issues
U. Yeliz Eseryel
Questions?
IST 600 ERP Systems: Key Implementation Issues
U. Yeliz Eseryel