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

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

3. 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

4. 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

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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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