JDE/ERP Strategy
& Roadmap
Oracle Investment in JDE
Past track record of releases (17 in 6 years)
Current roadmap to 2018
Upgrade Value Proposition & ROI tool
Partner support, tools, training and resources
New modules/capabilities
• Environmental Accounting and Reporting
• Financial Mgmt Compliance Console
• Significant enhancement to Tools/Technical Mgmt
• Apparel & Fulfillment Mgmt
• Purchase Card Mgmt (World)
Challenges for JDE Clients
When and how often to upgrade?
What is the Business Case?
Support from Oracle expiring?
Do we have a clean house (app portfolio)?
Is JDE the right solution?
Is IT aligned with the business?
Where do we make our investments?
What about process improvement?
1. Standardized Processes & Systems Defined 2. Specialized Global Competency Teams 3. E-Commerce Tools Leveraged
4. Master Data Standards Defined 5. Standardized End-to-End KPI‟s
CURRENT
FUTURE
BEST IN
CLASS
1. Lack of Standardized Processes & Systems 2. Low adoption of COE‟s
3. Manual, Paper Based Processes 4. Fragmented Master Data
5. Fragmented KPI‟s
1. Adoption of Standardized Processes & Systems 2. Global Process Governance
3. Global Visibility to Transactional Data 4. Master Data Governance
5. Automated KPI Reporting
Strategic Business Enablement
(Business Intelligence, Collaboration,
Capability, Flexibility & Agility)
Operating Excellence
(Decision Support, Response Time, Error
Rates, Cash Optimization)
Complexity Reduction
(Eliminate, Simplify, Automate, Consolidate,
Globalize)
Maturity
Strategy
Move Up Maturity Curve Over Time, Toward Best In Class
Source: The Hackett Group GBS Report, March 2011Maturity Model
Business/ Enterprise End
IT Alignment Applications Users Infrastructure
1 Core ERP
There is a link between business and IT for configuration updates.
ERP is not overly customized; core implementation is complete
Basic end user training is complete.
ERP infrastructure is adequate.
2 Stable ERP The role of business in ERP
evolution is defined.
ERP is the backbone of enterprise applications. Applications interfacing is
complete.
End users fulfill ERP functions without excessive
help desk or support.
ERP infrastructure is stable.
3 CoE Defined
Business has active ownership of business processes. Current KPI is
measured.
The applications portfolio is inventoried.
End users receive periodic refresher training
ERP infrastructure is flexible. Apps data is generally
synchronized.
4 CoE Managed
KPI measures and targets are in the system. EPMO directs
business process transformation.
The applications portfolio has been rationalized.
End users are trained to business processes and continuous training is in
place.
Enterprise applications infrastructure is flexible.
5 CoE Evolving
Business process change is guided by KPI performance
and configuration is in the hands of business.
The applications portfolio has been optimized.
End user job performance is linked to business process
performance
Enterprise applications infrastructure is adaptive to
applications changes.
Maturity Model
Spectrum of Maturity
Process
Org
Blended
Functional/
Process
Functional
Org
Blended Site/
Functional
Site-Led
Org
“World Class”
maturity
Manual
Single instance ERP
Std app
playbook
Multiple ERP
platforms + instances.
Playbook plan
No ERP
platform
support.
Manual s/w
No ERP
Std defined.
Playbook issues
Solved ad hoc
Documented with
limited automation
& standardization
Inconsistent
documentation,
automation, low
standardization
Mature trained,
automated, with
standardization
People/Governance
Process
Technology/Tools
1 ERP platform,
w/multiple
instances
Mult playbooks
1 1.5 2 2.5 3 3.5 4 4.5 5 P-050 – P-060 – P-090 - P-110 – P-120 – P-070 – P-080 – Standardization Maturity
Single GBU Standards
Within GBU 1-3 GBU‟s Standardized
GBU‟s Standardized
Documented, consistent, with basic auto
Basic level of process consistency, non-auto
Mature, trained, highly auto, measured, high perf orming
World Class, Best Practices model
No Standardization 1.0 Ad hoc, manual process
Standardization Scale
Maturity Scale
1.0 1.0
P-050 Create Purchase Req.
P-060 Purchase goods
P-090 Consignment Stock
P-110- MRO
P-070
Receive
Materials
P-080
Manage
Payables
Planning and Issue PO Material Receipt Accounts Payable
= Site specific
Measuring improvement
© 2011 Trissential. All Rights Reserved.
© 2011 Trissential. All Rights Reserved. 12 12
Measuring Improvement
By inventory, Pentair is a “non-top performer” vs. World Class processes
Fax/Email are considered manual processes
Ashland Anoka Delavan Glendale Han Park Herental Lausanne Reynosa Sanford Straubenhardt World Class Process:
Purchasing
Kanban Card Scanned Keyed Scanned Scanned Scanned Scanned N/A
Keyed/
Scanned Scanned Scanned Scanned Purchase Orders Manual Manual Manual Manual Manual Manual Manual Manual Electronic Manual Electronic Price Changes Manual Manual Manual Manual Manual Manual Electronic Manual Manual Manual Electronic Order
Acknowledgements Not Required Not Required Not Required Not Required Not Required N/A Not Required Not Required Not Required Not Required Electronic Advance Ship Notice Not Required Not Required Not Required Not Required Not Required N/A Not Required Not Required Not Required Not Required Electronic Receiving
Goods Receipt Manual Manual Manual Manual Manual Manual Manual Manual Manual Manual Scanned Accounts Payable
Invoice Receipt Manual Manual Manual Manual Manual Manual Manual Manual Manual Manual Electronic Invoice Exceptions Metafile Manual Esker Manual Manual Manual Manual Manual Ultimus Manual Electronic Vouchers Manual Manual Manual Manual Manual Manual Manual Manual Manual Manual Electronic Vendor Self-Service Not offered Not offered Not offered Not offered Not offered Not offered Not offered Not offered Not offered Not offered Portal
Purchasing
Supplier
PO
Sent
PO
Receive
d
Acknowledg
e sent
ASN
sent
Packing slip
keyed in
ERP
Invoice
sent
Invoice
keyed in
ERP
Purchasing
Supplier
Cu
rre
n
t
S
ta
te
Fut
u
re
S
ta
te
Acknowledg
e printed
ASN
printed
3-Way
Match
PO
posted
to portal
Product
shipped
Invoice
printed
PO printed
PO keyed
into ERP
PO loaded
into ERP
Acknowledg
e posted to
portal
Acknowledg
e/PO
verified
electronicall
y
ASN
sent
ASN/PO
verified
Acknowledg
e/PO
verified
ASN/PO
verified
Product
received
using RF
Product
shipped
Invoice
posted
Invoice
loaded into
ERP
3-Way
Match
P
P
P
P
P
P
Paper
P
P
P
P
Measuring Improvement
Typical Key Drivers
Ask the question, why change?
•Opportunities for cost reduction (process, people,
technology)
•Opportunities to improve and standardize technology
•Opportunities for process improvement
•Agreed upon and standardized metrics
•Improved and clearer alignment to business
•Become more proactive, less reactive
•Reduce organizational risk
Improvement Roadmaps
A tool of alignment to the business
Allows for planning, budgeting and prioritization
Gives a sense of direction and decision making
Shows a sense of sequence & schedule
Enterprise Apps Roadmap & GCT
…App Stds…App. Port LCM/Consolidation…Execution…App COE‟s
Leadership Activities
Program Launch
• Executive Review &
Feedback
• Build Team, Org Comm., and
Business Case
• Foundational GCTs
• Scope & Plan • Deploy
• Measure & Refine
• Transformative GCTs
• Scope & Plan • Deploy
• Measure & Refine
• Align to Foundational GCTs
• Bus Process Assess v2
• Site Visit
• Capture AS IS, Std & Mat. • Identify GCT Potential
• Existing GCT‟s
• Continuous Improvement • Integrate to PMO & GCT • Standardize & Mature • Training PMO 8/1/11 10/1/11 1/1/12 6/1/12 1/1/13 1/1/14 1/1/15 Business Case Developmen t $ CFO Summit Exec Present EA Consolidation Complete Approval
…Port Mgmt…Gov. & People…Cross Team Coord…Training, Tools, Automation
I2I Training….Process Stds…Tech.. Etc. P2P Training….Process Stds…Tech Execution…Gov & Oversight
Other End-to-End Processes
IT – Infrastructure, Strategic Sourcing, Collections (Get Paid), PIMS, NPS
Review GCT
Review BPA Review BPA
Review GCT Review GCT New GCT‟s Defined Training….Process Etc.
Roadmap Sample
Roadmap Sample
1)
Upgrade to JDE E1 9.0
•
100% web enabled
•
Improved ease of use
•
Improved access to data
•
Improved support, funct,
security, scalability
•
Improved basic workflow
•
Data clean up/archive
2) Upgrade hardware
platforms for standards,
TCO and future growth
3) System failover
4) Refresher & Net/Change
JDE training
5) Improvements to PR, HR,
CAM, Fin, CRM
1) HR Employee & Manager
Self Service
2) Extensive workflow &
automation
3) Online Benefits & Open
Enrollment
4) Job site usage for HR
5) Applicant Tracking
6) Competency Mgmt
7) Resource Assignments
8) CAM improvements
9) Evaluate QA, Field project
mgmt, budgeting, legal
10) CTC improvements
Phase 1 (Upgrade)
Build Foundation
Phase 2
Improve & Extend
Phase 3
Expand, Innovate, Iterate
1) Expense Mgmt.
2) Sourcing Improvements
3) Inventory Management,
requisitions, receiving
4) Portal Usage
5) Quality Assurance
6) Budgeting/Modeling
7) Evaluate 2-3 improvmts
8) Validation of EA strategy
& re-plan EA roadmap
9) Barcoding/DC
Bus. Integration Plan
Strategy: Consolidated
business process model
•
Business Integration Plan
& Supply Chain
•
Develop ERP Business
Case and Approvals
•
Technology Architecture
•
Business Integration &
ERP Project
•
E-business
•
Tactical Enhancements
•
Other ERP/E1 Initiatives
•
JDE Release Schedule:
•
World A7.3 Support
•
E1 8.9 Support
Tech. Deploy
Scope, Plan, Requirements,
Design, Build, Deliver – E1 v9.x?
Integrate through leveraging, simplifying and standardizing business processes on a common ERP
Roadmap & ERP Capital $ Go Liv e S ta b iliz e 2 yr Contract Yr1: $665,000 Yr2: $695,000 1st 1yr Extension $720,000 2nd 1yr Extension $750,000
Premier Support Through 2013 (upgrades, fixes, phone, tax, legal & regulatory)
v9.0 v9.1 v9.2
Premier-9/08 Sustaining Support (upgrades, preexisting fixes, phone) Indefinite
Declining Freeze
Ext./Term.
Wave B Wave C E1 Upgrade
Assess
tax & reglatory-9/09
Ext./Term. Ext./Term. Phase - II Go Live S ta b iliz e
Supply Chain Recommendations
Arch. Plan OTM Data Whse World 2010, Prepay Hyperion Demantra
Roadmap Sample
For each Phase in the process:
•
Determine the core objectives that must be meet before moving forward
•
Assess what data exists and validate that data (i.e. how good is the data)
•
Identify gaps between existing data and the core objectives
•
Develop a plan to resolve those gaps
Plan & Mobilize Assess Current State (Baseline) Vision & Strategy Blueprint (Roadmap and Recommend-ations) Software/ Process Evaluation & POC Wave 1 . . . N Design and Implementation Key Drivers •Issues •Risks •Opportunities •Benefits
