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TUC Thumbs Up Consulting TUC Thumbs Up Consulting April 22, 2006 1 Putting the Enterprise into the Enterprise System TUC Thumbs Up Consulting by Thomas.

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Presentation on theme: "TUC Thumbs Up Consulting TUC Thumbs Up Consulting April 22, 2006 1 Putting the Enterprise into the Enterprise System TUC Thumbs Up Consulting by Thomas."— Presentation transcript:

1 TUC Thumbs Up Consulting TUC Thumbs Up Consulting April 22, 2006 1 Putting the Enterprise into the Enterprise System TUC Thumbs Up Consulting by Thomas H. Davenport Shirley Justice, Trang Le, Brad Lucas, Corey Pincock, Brian Reich

2 TUC Thumbs Up Consulting TUC Thumbs Up Consulting April 22, 2006 2 Agenda Allure of Enterprise Systems  Scope of Enterprise System  Anatomy of Enterprise System When System and Strategy Clash  Configuring Enterprise System Impact on Organization Role of Management Case Study: Doing It Right at Nike  Critical Success Factors TUC Thumbs Up Consulting

3 TUC Thumbs Up Consulting TUC Thumbs Up Consulting April 22, 2006 3 Allure of Enterprise Systems  A solution to the fragmentation of information in large organizations  Multiple Data Repositories  Legacy Systems for Each Function  Productivity and Performance Drag  Maintenance Leads to High Costs TUC Thumbs Up Consulting

4 TUC Thumbs Up Consulting TUC Thumbs Up Consulting April 22, 2006 4 Scope of Enterprise System TUC Thumbs Up Consulting A/R & A/P Asset Accounting Cash Mgmt & Forecast Cost-Center Accounting Executive Info System Financial Consolidation General Ledger Product-Cost Acctg Profitability Analysis Profit-Center Acctg Period-Related Costing Inventory Mgmt MRP Materials Mgmt Plant Maintenance Production Planning Project Management Purchasing Quality Management Routing Management Shipping Vendor Evaluation Financials Operations & Logistics Order Management Pricing Sales Management Sales Planning HR Time Accounting Payroll Personnel Planning Travel Expenses Sales & Marketing Human Resources

5 TUC Thumbs Up Consulting TUC Thumbs Up Consulting April 22, 2006 5 Anatomy of Enterprise System TUC Thumbs Up Consulting Central Database Inventory and Supply Applications Manufacturing Applications Reporting Applications HR Mgmt Applications Financial Applications Employees Managers and Stakeholders Sales and Delivery Applications Service Applications Back-Office Administration Sales Force & Customer Service Customers Suppliers

6 TUC Thumbs Up Consulting TUC Thumbs Up Consulting April 22, 2006 6 When System & Strategy Clash  Challenges  Business must be modified to fit the System  Vendors structure systems to reflect “Best Practices,” not the Customer  Some degree of customization  Investment: ranging from $50m to +$500m  Benefits Realization  Alignment  “SAP isn’t a software package; it’s a way of doing business.”  Competitive Advantage - Integration TUC Thumbs Up Consulting

7 TUC Thumbs Up Consulting TUC Thumbs Up Consulting April 22, 2006 7 Configuring Enterprise System  Modules  For each function, there is a module to install  The customer picks which ones to install  Generally, the more modules, the greater the integration  Configuration Tables  Enables adjustments to the system to achieve best possible fit with your company’s processes TUC Thumbs Up Consulting

8 TUC Thumbs Up Consulting TUC Thumbs Up Consulting April 22, 2006 8 Impact on Organization  Company Strategy  Streamlines Management Structure  Centralization of Information  Culture  Standardization of basic business transactions  Integration-enabled flexibility  Transparency  Organization  Global alignment TUC Thumbs Up Consulting

9 TUC Thumbs Up Consulting TUC Thumbs Up Consulting April 22, 2006 9 Role of Management  Weigh ES implementation with its cost and complexity  Ensure the company addresses all business implications  Management Questions  Strengthen our competitive advantages?  Erode our competitive advantages?  Effect on organization and culture?  Extend to all or some functions?  Global roll-out or Regional roll-out?  Other alternatives to ES? TUC Thumbs Up Consulting

10 TUC Thumbs Up Consulting TUC Thumbs Up Consulting April 22, 2006 10 NIKE TUC Thumbs Up Consulting Planning i2 Foreign Trade Vastera Operations SAP Sales Siebel HR People Soft Picked best in class partners to create a competitive strategic advantage  Over 100 legacy systems throughout our global infrastructure  Global Function leaders to create “Future Vision”  Business Systems 1 st ; Business Processes 2 nd  Vision Strategy “Change the Game”  Planning 5 years; Implementation 5 years  Phased Implementation Approach  Canada; USA; EMEA; APAC; Americas  Organizational & Cultural Changes Resources Scope Time

11 TUC Thumbs Up Consulting TUC Thumbs Up Consulting April 22, 2006 11 Critical Success Factors  System & Strategy Alignment  It’s a way of doing Business  Integration and Transparency  Extensive Planning & Implementation  Short, Mid, and Long-Term Plans  Risk Mitigation  Functional Experts to Lead the Charge  Understand Organizational Impact  Systems, Processes, Culture, People  Functional Experts to X-Functional Experts TUC Thumbs Up Consulting


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