ELEVATING OUR PROFESSIONALISM
48
THA
NNUALC
ONFERENCEM
AY17-20, 2015
O
RLANDO, F
LORIDAEnterprise
Resource Planning (ERP)
Don’t get Rattled!
W
HAT
IS
AN
ERP?
Enterprise Resource Planning or as we know it “ERP” What is it, what does it do?
An ERP is a business management software which usually includes a suite of integrated applications that a company/agency can use to collect, store, manage and interpret data from many business activities,
including: Product planning Budgeting Finance Purchasing Asset Management Auxiliary Services Freight and Delivery Human Resources Students (Edu)
R
EASONS
W
HY
AN
A
GENCY
WOULD
PROCURE
A
NEW
ERP S
YSTEM
Existing platforms become outdated and obsolete ERP Solves IT Multi-Platform Issues
Promotes Competitive Environment
Integrates finance, sales and production into one main platform thus
allowing for decreased errors and wasted employee time trying to fix problems, or find needed information.
Availability of information
Increases and Improves Interaction
Faster response times and increased interaction across the organization as a
result of streamlining processes
Feasible and efficient ways of running day-to-day work flow processes.
With a functioning ERP in place, your business can solve critical issues that can become detrimental to the organization’s bottom line, if left unchecked.
S
O
W
HAT
’
S
THE
F
IRST
S
TEP
?
First step in procuring am ERP System is to
hire a Consultant to provide Process
Mapping Services
What is Process Mapping?
This mapping phase is a daunting challenge. It requires a
step-by-step, process level understanding of how each
affected work-related task is accomplished today (“As Is”) and of how each of those tasks will be accomplished in the future (“To Be”). In summary, the Consultant will take a snapshot of how the organization does its process flow systems processes throughout the organization
S
COPE
OF
W
ORK
D
EVELOPMENT
It is recommended that your agency utilize
the services of a Consultant to prepare your
Scope of Work (SOW).
Scope of Work should include:
Critical Requirements
Functional Requirements
Technical Requirements
Their should be input by every stakeholder that will be
utilizing the system
ERP P
RE
-P
REPARATION
Select a Steering Committee
Committee members should be stakeholders from all
levels of the agency
Select a Project Team comprised of the
following as Subject Matter Experts (SME’s):
Technical Representatives
Functional representatives
Financial Representatives
S
EVEN
D
ISTINCT
A
REAS
OF
E
VALUATION
R
EQUIREMENTS
1.
Functionality Requirements
Critical Requirements Functional Requirements Technical Requirements2.
Functionality Requirements DEMO
3.
Cost Proposal
4.
Services
5.
Viability
6.
Vision
S
ELECT
THE
P
ROPER
M
ETHOD
OF
P
ROCUREMENT
Request for Proposal (RFP)
Invitation to Negotiate (ITN)
S
AMPLE
E
VALUATION
C
RITERIA
The Evaluation Criteria of your formal solicitation
should address the key areas that are important to
your institution. Attached is sampling:
Functionality Requirements Critical Requirements
Functional Requirements Technical Requirement
Functionality Requirements Demo Cost Proposal
Services Viability Vision
S
TAKEHOLDER
F
EEDBACK
Allow feedback from the functional and user
group teams
During the Pre-planning of the ERP utilize the input of
your user group teams, including the Subject Matter Experts (SME’s)
During the Evaluation of Proposals, utilize the feed back
of your Subject Matter Experts (SME’s)
During the scheduled DEMO’s, utilize your Subject
Matter Experts (SME’s) to evaluate the demos and ask specific functional questions
During final ranking of proposer’s utilize the input of
F
ORMAL
S
OLICITATION
P
ERIOD
Make sure you have a list of potential proposers
List of prospective proposers may be provided by the Consultant List of prospective proposers may be provided by the institutions
stakeholders
List of prospective proposers may be provided by professional
associations or cooperative groups
Hold a pre-proposal meeting
Utilize this venue not only to answer questions related
to the scope and required forms to be submitted but to verify if the scope of work is attainable.
Allow an Q and A period with a deadline to send in those
questions. Respond to question via issued addendum.
Open all submitted proposals and determine
F
ORMAL
S
OLICITATION
P
ERIOD
Make sure you have a list of potential proposers
List of prospective proposers may be provided by the Consultant List of prospective proposers may be provided by the institutions
stakeholders
List of prospective proposers may be provided by professional
associations or cooperative groups
Hold a pre-proposal meeting
Utilize this vent only answer questions related to the
scope and required forms to be submitted with proposal but to verify if the scope of work is attainable.
Allow an Q and A period with a deadline to send in those
questions. Respond to question via issued addendum.
Open all submitted proposals and determine
E
VALUATION
OF
P
ROPOSALS
P
ERIOD
Make sure that the following groups are available for
attendance to one or all scheduled Evaluation, Demo and Final Evaluation and Ranking Meetings:
ERP Steering Committee
Purchasing Facilitating Group Subject Matter Experts
ERP Consultant
Schedule Evaluation of proposals from the Subject Matter
Experts (SME’s), these may include the following services areas:
Critical Requirements
Functional Requirements Student System
Financial Aid System
Finance System
HR & Payroll System Technical Requirements
E
VALUATION
AND
S
HORTLIST
P
ERIOD
Schedule a meeting for SMEs to provide their opinion
and observations to the ERP Steering Committee of the proposals submitted
Each SME Group should schedule their meetings separate from each
Group.
The goal of the SME’s is to provide pros and cons of each proposal
submitted, no ranking is required
Each SME Group should have their pros and cons and
recommendations ready to be presented to the Steering Committee
After receipt of the SMEs input have the ERP Steering
Committee provide their ranking of proposals received
After proposal have been ranked determine if any
shortlist should be decided, if so, schedule demo’s with the shortlisted proposers.
D
EMONSTRATION
(D
EMO
) P
ERIOD
Run demo sessions with shortlisted proposers
and all stakeholders to include:
ERP Steering Committee
Subject Matter Expert (SME) for each departmental area. ERP Consultant
Purchasing staff/facilitators
Make sure you provide sufficient time for
shortlisted proposers to provide their demos
including enough time for Q & A sessions
Allow a period after the demos for
clarifications and/or submission of any
additional information
F
INAL
S
ELECTION
P
ERIOD
ERP Steering Committee to receive all
opinions and recommendations from SMEs and
ERP Consultant
ERP Steering Committee to provide final
ranking based on the following:
Selection Criteria
Input from all SMEs during the proposal review and
demos
F
INAL
S
ELECTION
P
ERIOD
(IF ITN)
Partial ERP Steering Committee members
selected to provide final negotiations
Negotiation Team should address the following:
Total Cost of Ownership Hourly Rates for Training
Itemized system modules to determine if which ones will be
purchased
Determine any cost savings as a result of the negotiations Have the proposer submit a sample contract with Terms
and Conditions
Important to Note; run simultaneous
F
INAL
R
ANKING
& S
ELECTION
(IF ITN)
Request a “Best and Final” offer (BAFO) from all shortlisted
proposers
Evaluate the BAFO and prepare a report for the Steering
Committee
Negotiation Team to provide the Steering Committee a
recommendation of each proposer’s financial and services which provides the best option for the institution
Steering Committee to Rank all the Shortlisted proposers and
recommend the award to the highest ranked proposer
Prepare the formal recommendation to your governing body to
ratify the final selection
Upon ratification form your governing body; prepare final
F
EW
F
INAL
N
OTES
The ERP procurement process in a lengthy, heavy
resource as well as detailed technical process, make sure
you allot sufficient time, resources and staff to make sure
you are successful
The procurement and selection of your ERP system is just
but one step in the process, only the tip of the iceberg
An ERP selection is all about clear lines of
communication, gathering of information and decision
making
