1. Hosted by Enterprise Applications Center of Excellence A Maturity Model Michael Doane META Group

2. Hosted by Why an ERP Center of Excellence? An optimization of business processes that drive business benefit continually An optimization of end user competency and employee fulfillment of business processes Continued coherence and integration of functionality and data through all process chains

3. Hosted by Parameters: Business Applications Span (ERP is the backbone) Maintenance and support of ERP and related functions (ERP/CRM/SCM) Optimization of current system usage Optimization of current system usage Continuous business improvement Continuous business improvement Prepare the company for transformational change (all the time) Prepare the company for transformational change (all the time) As Is To Be Center of Excellence Functions Business IT

4. Hosted by The Enterprise Applications Value Chain It is imperative to link end users to profit & loss Without measurement, you cannot begin Business process improvement is the source of measurable business improvement IT also has its ‘business processes’: reduction of IT costs applies to this value chain Order Fulfillment Process Order Fulfillment Process Sample Business Performance KPI’s  Return on sales  Return on assets  Net sales per employee  Ratio of Assets/Liabilities Sample Business Performance KPI’s  Return on sales  Return on assets  Net sales per employee  Ratio of Assets/Liabilities Procurement Process Procurement Process Production Process Production Process Sample Major Business Processes Business Process Drivers Key Performance Indicators Profit & Loss SAP User Competency Software

5. Hosted by Foundation of Organization Planning Two aspects of “IT” Business-specific activities = the Center of Excellence Infrastructure/support ~ “Foundation Services” Architecture Infrastructure/ Operations IT Resource/ Governance Center of Excellence

6. Hosted by Continuous Education Multi-site Virtual CoE FinanceSales Logistics Enterprise Program Management Production Users Continuous Education UsersUsersUsers Integration Management (Functional, Cross-Application) Custom Applications Software Configuration & Support Help Desk Production Control/Change Management Integration Management (Technical) Process Owners Users Users UsersUsers Functional Oversight Remote Custom Applications Process Oversight

7. Hosted by META Group Maturity Modeling Levels 1-5 Elements or best practices (weighted) Up to 10 per maturity level Categories METAmap (META Group Maturity Assessment Program)

8. Hosted by Center of Excellence Maturity Model

9. Hosted by The Consequences of Implementation Concerns Pre ImplementationMistakes Noted After Implementation Source: The State of ERP Services Multi-Client Study, META Group 2003 Scale 1=Unimportant, 5=Very Important

10. Hosted by Do you have some form of a CoE? 1.Yes 2.No

11. Hosted by Level 1 Core ERP ERP is at the center of an applications portfolio The elements for this level are generally identical to those of a successfully completed implementation It is imperative to keep the project team intact and ready for transfer to the Center of Excellence

12. Hosted by Level 2 Stable ERP Most new ERP installations take 3 to 4 months to achieve a state of stability In this period, project staff transitions to the Center of Excellence

13. Hosted by Level 3 CoE Defined After stabilization of ERP, the Center of Excellence is functional Attention turns to measures & benefits

14. Hosted by Level 4 CoE Managed

15. Hosted by Level 5 Evolving CoE

16. Hosted by End Users

17. Hosted by Business/IT Alignment

18. Hosted by Infrastructure

19. Hosted by Enterprise Applications

20. Hosted by Results by Maturity Elements Results by Category

21. Hosted by Overall Results METAmap (META Group Maturity Assessment Program)

22. Hosted by Of those who have a CoE, which level have you attained? 1. Core ERP 2. Stable ERP 3. Defined CoE 4. Managed CoE 5. Evolving CoE

23. Hosted by Keys to CoE headcount control: 1.Support given to Business Process Owners 2.Direct software configuration by CoE (business-led) 3. Active competency management/continuing knowledge transfer

24. Hosted by Conclusion/Recommendations The CoE must be led by business staff and business concerns (measurable) A CoE will be sustained if measurement and business benefit are at the foundation People/processes tend to decay through time Maturity is accelerated when benefits are achieved