SUMMER 2005 JUNE Building the ERP Business Case

IST 600 ERP Systems: Key Implementation Issues U. Yeliz Eseryel Initial Need How does the company feel the need for an integrated system? Existing problems Future plans The competition Customer Demand

IST 600 ERP Systems: Key Implementation Issues U. Yeliz Eseryel Potential Analyses SWOT Analysis GAP Analysis Elevator Speech 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 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 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 Improvement opportunities (provides) Integration b/w engineering and design systems Benefits (triggers) Improved time to market reduces the development cost and reduces engineering changes Benefit Category (achieved) Decrease COGS Implementation Plan (measured) Develop future state process through integration Metrics Profit margin per new product development

IST 600 ERP Systems: Key Implementation Issues U. Yeliz Eseryel Next Step Link these to Strategic Objectives % 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 Business objectives Critical Success Factors First to market Key Performance Indicators Benefits for each of the areas.

IST 600 ERP Systems: Key Implementation Issues U. Yeliz Eseryel Example See handouts.

IST 600 ERP Systems: Key Implementation Issues U. Yeliz Eseryel Practice Team Breakout session

IST 600 ERP Systems: Key Implementation Issues U. Yeliz Eseryel Questions?