IS Consulting Process
(IS 6005)
Masters in Business Information Systems 2006 / 2007
Programme in Professional Information System Practices
Fergal Carton
Business Information Systems
This week
• Revision class
• Reading list
MBS (BIS) / 6005 / IS Consulting Process
Topics covered 1st term
The IS Consulting Business:
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What does the IS Consultant do?
•Segmenting consulting practice (eg. Vision)
•Role of consultants on PPARS
•Typical asssigments
•PCB example
•GAP analysis (eg. UCC)
•ERP Projects: scope, resources, timescales, phasing
•Consultant skills (analytic, technical, project)
•Consultant tools
•Identifying unique features of business
Managing Client Engagements:
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Requirements analysis and understanding the client goals
•Handouts
Task definition and project resources
•SIB
Preparing and presenting the solution options
•In-house vs custom
MBS (BIS) / 6005 / IS Consulting Process
Consulting practice in Ireland
• Segmenting the market
– Emphasis on services (from Helpdesk to ASP model)
– Any other research on market?
– Homework on Vision
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Typical consulting assignments
Role of consultants
Perspectives on IS function
Do you know more than the client?
MBS (BIS) / 6005 / IS Consulting Process
Segmenting the IS consulting market
• What services are provided?
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IT strategy definition (laying out an investment plan for IT spend)
Advise on IT cost reduction
Feasibility study or business case for IT spend
Develop requirements for new system
Package selection and implementation
Software development (Design, Build, Run, …)
Outsourcing operations (ASP, Helpdesk, IT support, …)
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• What markets are operated in?
– Public
– Commercial
– SME
MBS (BIS) / 6005 / IS Consulting Process
Propose, or not to propose?
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“Changing” your spots just to snag a project
Fit of project with your capabilities
Trade off between need to grow and comfort zone
Challenge the sales team?
Respond with a polite “no-bid” letter
MBS (BIS) / 6005 / IS Consulting Process
Vision exercise
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Background, size, structure, locations
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Unique selling point (if one exists)
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Industry sectors/practice areas
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Offers/services within these areas
MBS (BIS) / 6005 / IS Consulting Process
What do consultants do?
• Consulting project examples
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ERP projects: big-bang or phased approach?
Vital role of consultants: availability, courageousness and tenacity
Telephone company uses Tel no. to identify customers!
Catering trade: 14% stock loss, use of IT for control
• Gap analysis example: colour coded “fit” of ERP to actual processes
• PCB case studies presented
– Skills a key issue in implementation debate (Project Mgt, IT support, PU’s,
…)
– Structured process overview diagram a good communication tool
– Top down approach, talk to managers first: protocol and common courtesy
– Including regional users in requirements specification
MBS (BIS) / 6005 / IS Consulting Process
Gap analysis
• Homework: how to reconcile Requirements
Specification (wish list) with ERP generic processes?
• ERP Finance modules for UCC
– Scope
– System requirements
– Responding to an ITT / RFP
• Requirements definition report
– Functional requirements by dept, process, module, …
MBS (BIS) / 6005 / IS Consulting Process
Gap analysis: expectation mgt
• Describe existing processes
– Document how things are currently done
– Review inputs and outputs of current process (screens, forms, reports)
– Outline problems with current way of doing things (speed, risk of error,
…)
– What improvements are expected from system (single point of data
entry, faster reports, less manual work, …)
• How to design and communicate the proposed solution
– Review requirements documentation: answer with
– Walk-through solution
– Get sign-off from users
MBS (BIS) / 6005 / IS Consulting Process
Managing the GAP:
workshop with client managers
– Off-site, phones off, informal, actual consulting team
members present, start in “working together” mode
– Company history and current challenges (get people
saying yes)
– Overview of ERP (education, building awareness, testing
the water for resistance, …)
– Requirements for ERP (generic and company specific)
– Focus on benefits
– Understanding the cost of the Gaps (alternative
functionality, workaround, modification)
– Addressing the functionality gap (get commitment for
resources to work on B’s and C’s)
MBS (BIS) / 6005 / IS Consulting Process
Last week
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Role of consultants (cf. Wang & Chen paper)
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Personal commitment: invest the time in getting to know the client
Winning trust
Significant “knowledge asymmetry”
Not doing, but advising : how to disentangle yourself from an operational role
Conflict resolution
Freeman 5 concepts of IT advisory role:
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Relationship
Role
Visualise success
You advise, they decide
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Be results oriented
Managing the GAP: workshop with client managers
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Disentangle yourself from operational role
Give the criteria by which you would make the decision, rather than the decision
Off-site, phones off, informal, actual consulting team members present, start in “working together” mode
Company history and current challenges (get people saying yes)
Overview of ERP (education, building awareness, testing the water for resistance, …)
Requirements for ERP (generic and company specific)
Focus on benefits
Understanding the cost of the Gaps (alternative functionality, workaround, modification)
Addressing the functionality gap (get commitment for resources to work on B’s and C’s)
Phasing discussion: big bang vs phased
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Business constraints or seasonality in business cycles (eg. Hershey)
Scale (# users, # countries, …)
Scope (# modules, # interfaces, level of customisation, …)
Timescale and cost (NB. PPARS still costing €21m. a year)
Different requirements between sites, resistance to ERP (get quick wins first)
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Format of tenders
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Analysis of data volumes (process flow for revenue and expenditure cycles)
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Functional requirements might be by dept, process, module, …
# non-PO invoices (40%)
# debtor accounts
Research account maintenance
MBS (BIS) / 6005 / IS Consulting Process
All Homes Provide
A roof over your head
A floor under your feet
A lock on the door
Electricity, water, sewer
A starter home
Uses standard blue prints
Can be built with generic skills
Requires much compromise
Doesn’t have unique features
Is very similar to the next house
Is generic in style and function
Picture
Your dream home
Architect develops a custom plan
Requires skilled craftsman
Requires little compromise
Is unique where you value it
Is like no other house
The style and function are specific
MBS (BIS) / 6005 / IS Consulting Process
ERP
• Why ERP ?
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Automate and streamline sales/quote/order/invoice
Shorten order processing time
Better inventory control
Consolidates all sales information
Improve sales information on customers
Why reinvent the wheel, use best practice
Scalability
Robustness – one system, minimises repetition
Faster to implement
Clear upgrade path (linked to vendor): better expansion capability
Develop ERP skills in-house, useful for further projects
Ability to implement, large team required!
Quantifiable outcome & timescale
MBS (BIS) / 6005 / IS Consulting Process
In-house
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More control over process design
More adherence to specific requirements
More programmers required
Own processes may be better than ERP template
Have we got the resources / experience
– Design
– Build
– Support
• Cost of back fill
• Long term Support issues
• Time scale & cost
MBS (BIS) / 6005 / IS Consulting Process
Phasing discussion: big bang vs phased
– Business constraints or seasonality in business cycles (eg.
Hershey)
– Scale (# users, # countries, …)
– Scope (# modules, # interfaces, level of customisation, …)
– Timescale and cost (NB. PPARS still costing €21m. a
year)
– Different requirements between sites, resistance to ERP
(get quick wins first)
MBS (BIS) / 6005 / IS Consulting Process
Package vs. custom debate
• What is unique to the business?
– Business model (cost, products, design, customer satisfaction, …)
– Unique feature (products, production methods, IS, supply chain, …)
• Leading questions
– Revenue, headcount, …
– Current successes, recent announcements, …
• Project timescale:
– a trade off between cost and tying up resources
– Scope creep because of changes to the business model
• Eg. EMC integration of DG rejected because of timeline impact but later regretted
MBS (BIS) / 6005 / IS Consulting Process
Consulting skills
• IS consulting profession
– Consultant, project manager, analyst
• Consultant skills
– Analytic abilities
• Analysis tools (IT audit example)
• Checklists, presentation matrices, …
• Adding value in reporting findings in a way that prioritises actions to be taken
– Technical abilities
– Project management abilities
– Example from Accenture
MBS (BIS) / 6005 / IS Consulting Process
Roles on ERP projects
• Key roles in ERP project: Accenture example
– Client, consultant and technology vendor resources
– Doubling up of client and consultant resources (experience where it counts)
• ERP project team example (PCB case study)
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Steering committee (SC) meets once a month, only want a report on progress
Project issues should be sorted out before SC meeting
SC members represent first and foremost their functional areas
Project Manager should not be on Steering Committee?
Clarity of project team presentation, keep like resources together
Time commitment to project (increases downwards through org chart)
Reporting lines not trivial: think where decision bottlenecks can occur (and
place a consultant at that point)
MBS (BIS) / 6005 / IS Consulting Process
Things to think about
• In considering change, think about how people are goaled /
measured
• It will always benefit you if you make your boss look good
• Policy driven approach
• Statement of work
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Decisions
Reporting
Milestones
Planning
Policies
MBS (BIS) / 6005 / IS Consulting Process
Things to think about
• Resistors easier to deal with than the George Hall’s
• Pfizer: 3 IT development centres competing against each other
• Communication
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set your stall out, be determined
Deliver tough message first, but how you communicate it is key
Different deal shapes (eg. SAP licence issue)
Is manufacturing cultural?
• How do you judge level of interdependence between plants
• Interdependence betweeen ERP and legacy (ownership issues?)
MBS (BIS) / 6005 / IS Consulting Process
More tips on proposals
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Consistency in style throughout proposal
Knowledge of a sector: state it or show it
Who is the biggest benefactor of MIS?
IT resources are important
Customers like frameworks
An architecture of functions might re-assure
Phasing, on what basis?
Package vs. custom discussion
Security deserves attention
Maybe customer doesn’t understand new business model
Honesty looks professional and increases credibility
MBS (BIS) / 6005 / IS Consulting Process
A methodology …
• Requirements are “representational”: you can’t
interview everybody
• Breaks a large task into manageable chunks
• Shows knowledge and experience
• Allows negotiation over the scope of work
• Inspires confidence
• Can take account of latest research / thinking
• Helps calculate FTE and budget
MBS (BIS) / 6005 / IS Consulting Process
Popular issues / projects
• Read current business press for ideas (SBP, FT, Economist,
CEO, Fortune, …)
• Outsource to Puerto Rico: like Ireland 20 years ago
• Outsourcing: the knowledge economy in Ireland
• IFSC now has reputatation for “futures” currency trading
• “Centre of excellence” notion: holding on to higher value
activities
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MBS (BIS) / 6005 / IS Consulting Process
Marketing funnel
• Consulting sales is like any other sales: creating
client need is critical
• Discuss sales tactics with someone you know who is
a good sales person
• Quantify the levels in the funnel (as you would for a
sales campaign)
MBS (BIS) / 6005 / IS Consulting Process
What’s an IT strategy
• Strategy is a report which matches business goals to
IT directions
• Lays out a plan for future investment
• Contains pointers to implementation initiatives
• Can refer to your experience of implementing
solutions
• Hopefully leads to you being retained for the
implementation work
MBS (BIS) / 6005 / IS Consulting Process
Croker Strategy
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Customers
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Stakeholders
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GAA
Govt.
Sponsors
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Suppliers
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Sports organisations (IRFU, FAI, IOC, …)
Club / county / national team supporters
Corporate Ireland
Business conference users
Concert goers
Tourists
TV viewers
Internet users
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Tourist Board
Dublin City council
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Products
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Sports events (seats and viewing rights)
Entertainment events
Business conferences
Not for profit events
Hotel accommodation
Museum
Retail
Telecoms
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MBS (BIS) / 6005 / IS Consulting Process
PPARS project
• Governance
• Complexity
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Job title
Responsibilities
No payscale
Bonuses
Overtime
Link roster to payroll?
• Resources
• Business process change, not system issue
MBS (BIS) / 6005 / IS Consulting Process
PPARS project information
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http://irishhealth.com/index.html
– PPARS is only a tool, a computer system, to aid the recording
personnel data and payroll.
– Problems lay deeper than the PPARS system,
• e.g Business Process is poor,
• no standardisation,
• poor management of resources,
• no reports to monitor pay expenditure and pull back on over
spends.
– The system is only highlighting the problems that exsist.
– The system is being used as an excuse. If managers managed and
were held accountable and responsible for their actions, the roll out
of a new system should not be such a chore!!
MBS (BIS) / 6005 / IS Consulting Process
PPARS scope (www.PPARS.ie)
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Personnel Administration
Organisational Management
Time Management
Payroll (full Gross to Net)
Personnel Development (Qualifications only)
Training & Events
Travel Management (Expenses only)
Compensation Management (Mass Pay Increases only)
• Managers Self Service
• Employee Self Service (Limited Pilot)
• Electronic time capture (Pilot)
MBS (BIS) / 6005 / IS Consulting Process
PPARS.ie
Core Benefits
• An integrated HR system for the Irish Health System.
• Comprehensive employee data and profiles.
• Improved reporting / standardised reporting across and
within agencies.
• Enhanced potential to improve the facilities for resource
planning / costing.
• Potential to improve the alignment of resources to service
plans.
• Enhanced information on organisational structure,
reporting relationships, positions and staffing
complements.
MBS (BIS) / 6005 / IS Consulting Process
PPARS.ie
Core Benefits (cont.)
• Standard & streamlined processes, procedures and forms.
• Reduced administrative costs.
• Compliance with the reporting requirements of the
Department of Health & Children, the Health Services
Employers' Agency and the Office of the Comptroller and
Auditor General.
• Potential for electronic information flow between Health
Agencies and the Department of Health & Children.
• Enhanced empowerment of Line Managers – In line with
best practice in HR.
• Improved employee satisfaction through, for example,
improvements to career and organisation planning.
MBS (BIS) / 6005 / IS Consulting Process
Environments for IS / IT planning
Internal Organiastional Pressures –
demanding further distribution of IS/IT control organisation
High
Diffusion – degree of
decentralisation of
IS/IT control in the
organisation
“Opportunistic”
“Complex”
CRM
“Traditional”
External Competitive Pressures –
increasing the criticality of IS/IT to
the business
“Backbone”
ERP
Low
High
Infusion – degree of dependence of
the business on IS/IT
MBS (BIS) / 6005 / IS Consulting Process
Source : Sullivan (1985)
in Ward & Griffiths (1996)
IT strategic grid
(McFarlan & McKenney)
HIGH
Factory
Strategic
Support
Turnaround
Strategic
impact of
existing
systems
LOW
LOW
HIGH
Strategic
impact
of application
MBS (BIS)
/ 6005 / IS Consulting
Process
development portfolio
“IT is a tightly
managed shop
which must not
get beyond its
station”
HIGH
Strategic
impact of
existing
systems
LOW
IT strategic grid
“IT is integral to
the business”
(McFarlan & McKenney)
Strategic
Factory
eg. steelworks
eg. credit card
“Let’s get
on with it”
“Don’t call
us, we’ll call
you”
Support
eg. cement
Turnaround
eg. retailer
LOW
HIGH
Strategic
impact
of application
MBS (BIS)
/ 6005 / IS Consulting
Process
development portfolio
3 forces driving firms around grid
• Fit between IT potential and operations &
strategy
• Strategic choices made about IT
• Changes in the competitive environment
MBS (BIS) / 6005 / IS Consulting Process
Limitations of Strategic Grid
• Every company has systems in 4 quadrants
• Systems may migrate around quadrants
Therefore :
• Use grid to plot range of business applications
• Investment appraisal approach for each quadrant
MBS (BIS) / 6005 / IS Consulting Process
Application Portfolio
(adapted from Ward & Griffiths, Strategic Planning for Information Systems, 1996)
Key operational
Strategic
Applications on which
the organisation
currently depends for
success
Applications critical
to sustaining future
business strategy
Applications which
are valuable but not
critical to success
Applications which
may be important in
achieving future
success
Support
High Potential
MBS (BIS) / 6005 / IS Consulting Process
Application Portfolio
Example for a manufacturing company
Key operational
Strategic
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Bill of Materials
Inventory management
Customer database
Receivables / Payables
Employee database
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Sales order management
Links to suppliers
Sales Forecast & market analysis
Product Profitability analysis
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Time recording
Budgetary control
General accounting
Cost accounting
Payroll
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EDI with wholesalers
Manpower planning
Decision Support (capacity plan)
Expert fault diagnosis
Document processing
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Support
High Potential
MBS (BIS) / 6005 / IS Consulting Process
Reading list
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Handouts in class
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1 Oct 06
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18th Oct 06 UCC ERP project documentation?
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20th Nov 06
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8 Jan 07 (soft copies also sent)
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SIB Industries Inc. (case study on ERP implementation project)
“How to deal with difficult customer”, Peter Urs Bender
“Stand Up, Sit Down...Don’t Fight, Fight, Fight”, Jacobsen (2004)
Sales and Marketing, Ch. 6, Rick Freedman (2003). Building the IT Consulting Practice
What is the IT Consulting Business, Ch. 1, Rick Freedman (2003). Building the IT Consulting Practice
26th Feb
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PPARS handouts : articles from Greg Baxter, Ciaran Buckley, Ian Campbell, John Kennedy and Auditor General report extracts
Emails
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Sent 18 Oct 06:
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Sent 6th Nov 06:
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Sent 14th Nov 06
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Sent 20th Feb 07:
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“Effects of internal support and consultant quality on the consulting process and ERP system quality ”, Wang & Chen (2006), Decision Support Systems 46, pp 1029-1041
“Blaming ERP”, Osterland (2000), CFO, pp 89-92
“Business Process Management, The Future of IT “, Keen (2002), Working paper for Action Technolgies Inc.
“Strategy and The New Economics of Information”, Evans & Wurster (1997), BCG
“Systems Planning in the Information Age”, Sullivan (1985), Sloane Management Review
Sent 26th Mar 07:
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Format of Tenders and Evaluation
Appendix II, current data volumes
Key roles and team structure
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ERP Implementation Case Study (PCB), Fergal Carton
Rick Freedman (2000). The IT Consultant, Chapter One, Part One
“2x2 Modeling and Problem Solving”, Lowy & Hood (2004), Consulting to Management, Vol. 15, No.4, pp 40-47
Recommended reading
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Rick Freedman (2000). The IT Consultant: A Commonsense Framework for Managing the Client Relationship, Jossey-Bass / Pfeiffer, San
Francisco
Rick Freedman (2003). Building the IT Consulting Practice, Jossey-Bass / Pfeiffer, San Francisco
MBS (BIS) / 6005 / IS Consulting Process
Freedman is light reading!
– Building the IT Consulting Practice
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1
3 skim
4 yes
5 yes
6 have
7, 8, 9, 10 no
– The IT Consultant: A Commonsense Framework for Managing the Client
Relationship
• Parts 1 and 2
MBS (BIS) / 6005 / IS Consulting Process