www.panorama-consulting.com Presented by: Aida Zakaria In Search Of Business Value: How to Achieve the Benefits of ERP Technology www.panorama-consulting.com Presented by: Aida Zakaria

Outline Introduction The Need for Benefits Realization What is Benefits Realization Benefits Realization Activities Benefits Realization Tools The Value of Benefits Realization Conclusion

Introduction Significant investments in IT is a source of competitive advantage Companies invest millions of dollars to implement SAP, Siebel, or other ERP or CRM ERP is a tool used to achieve a business objective

Introduction (Cont’d) Paper Scope: Discuss obstacles and drivers of technology benefits realization Discuss how managers can optimize the potential of IT Discuss how managers can leverage people to achieve the maximum benefits of IT

The Need for Benefits Realization Why companies introduce cutting-edge tech as part of their IT strategies? Cost pressure Address inefficiencies Image Benefits realization is concerned with measuring and evaluating the actual benefits of IT

What is Benefits Realization “A comprehensive project approach that focuses on identifying, measuring and ensuring the business benefits achievable through technology” Breaks benefits into manageable chunks Utilizes tools to ensure the true benefits Consists of activities from inception through implementation

Benefits Realization Activities Development of Business Case, Corporate Metrics, and Benchmark: justifies, identify and quantify the potential benefits and compare to costs Organizational Change Management Cultural Assessment: identify cultural areas to be addressed with the change

Benefits Realization Activities (Cont’d) Cultural Change: focus on large gaps not all aspects Communications: effectively communicate changes to end users though various channels Business Process Modeling: ensure IT improves the process

Benefits Realization Activities (Cont’d) Development of Operational Metrics and Benchmarks: translate metrics into measured operational numbers for middle management Organizational Job Design and Planning: change job descriptions, reporting relationships to support the new technology

Benefits Realization Activities (Cont’d) Detailed Process Design: complete design addressing who will do what and how. Helps direct training courses Individual Metrics, Processes, and Benchmarks: for individuals to understand how their performance contributes to the success of the project

Benefits Realization Activities (Cont’d) Organizational Job Design Implementation: translating documentation to reality End-User Training: helps users understand and perform tasks Reward Design and Implementation: to motivate. Introduce KPIs in annual reviews

Benefits Realization Activities (Cont’d) Benefits Measurement: compare actual to projected results Root Cause Analysis of Benefits Gaps: understand why gaps exist Implementation of Corrective Action: activities to address the root cause analysis

Benefits Realization Tools Tools used to perform the tasks effectively: Business Case and Metrics: financial and cost-benefit analysis OCI Tools: Organizational Culture Inventory tools to identify gaps between current and ideal cultures Process Modeling Tools: modeling the before and after processes

Benefits Realization Tools (Cont’d) Skills Gap Matrices: identify required skills. Helps in arranging for training Benefits Realization Scorecards: to track actual benefits performance after go-live. Useful in disseminating information in the company

The Value of Benefits Realization Why should a company implement benefits realization approach? Reduce project risk Achieve close alignment between business and technical activities Identify and addresses obstacles to realizing benefits Provide more thorough understanding of lesons learned Provide better justification for future IT project approvals

Conclusion Investing in IT without compelling justification is not acceptable. There is a need to ensure that companies realize the potential benefits of technology The Benefits Realization approach into IT ensures reaching wise investment decisions and successful IT implementation