Post on 26-Dec-2015
A|EA DC CHAPTER January 9, 2007
Strategic Use of Enterprise Architecture (EA) with Enterprise Resource Planning (ERP) Systems For Federal Government
Success
Yeliz ESERYEL, MBA., MSc., PMP., CPIM.yeliz2002@alum.syracuse.edu
2
A|EA DC CHAPTER January 2007 yeliz2002@alum.syracuse.edu
Why Am I Here?
As a Project ManagerTo talk about Enterprise Resource Planning (ERP)
Systems implementations for federal government.
As a supporter of Enterprise ArchitectureUS Department of Transportation (OAO Corp)US Housing and Urban Development (Booz | Allen | Hamilton)
As a Syracuse University Adjunct ProfessorIST 710 Managerial ERP Decisions for Federal Government
Washington, DC (focus: federal government)
IST 600 ERP Systems: Key Implementation IssuesSyracuse Campus (focus: private sector)
3
A|EA DC CHAPTER January 2007 yeliz2002@alum.syracuse.edu
Who Are You?
Assumption about the audience: Work for or with Federal GovernmentLittle or no knowledge of ERP systemsGood understanding of EA
4
A|EA DC CHAPTER January 2007 yeliz2002@alum.syracuse.edu
Outline
What is an ERP system?Why should you care?
ERP Implementations in Federal GovernmentWIIFM
Why implement ERP?Why not implement it?Challenges
A Case StudyA Real Life Case Study- Welch Allyn
5
A|EA DC CHAPTER January 2007 yeliz2002@alum.syracuse.edu
What is an ERP system?
Enterprise Resource Planning System (ERP)
Complete Suite of Integrated Applications Finance / Controlling
Accounting
Customer Service
Sales / Marketing
Human Resources
Engineering
Single Integrated Database
Modular Structure
Similar Interfaces
8
A|EA DC CHAPTER January 2007 yeliz2002@alum.syracuse.edu
Why Should You Care?
NavyThe Department of Veterans Affairs
Oracle- Financials and Federal Purchasing
Small Business AdministrationOracle contract
National Institute of HealthOracle contract
9
A|EA DC CHAPTER January 2007 yeliz2002@alum.syracuse.edu
Why Should You Care? WIIFM Question.
Federal-government spending on ERP is expected to grow 33 % to more than $7.7 billion by 2010 (Input Research, 2005)Business involvement is necessary
After ERP, organizational dynamics change.
Knowledge is power.After ERP, power dynamics change.
New Career OpportunitiesLeadership roles within your agency or in other agencies,Consulting/project management opportunities.
Unique expertise combination: EA & ERP.It’s fun!!!
ChallengingComplexLearning opportunities
10
A|EA DC CHAPTER January 2007 yeliz2002@alum.syracuse.edu
Why implement an ERP system?Single integrated database
Data integrity Data sharing between applicationsEasier data handling
Better management of resources across sub-agenciesCentralize the finance and human resources efforts across agencies.Integrate key supply chain and other functionalities instead of maintaining many legacy systems.
The capabilities and processes enabled by different modules
Eg: Extensive reporting capability of Business Warehouse (BW)Customer Relationship Management- to automate transactions with civilians and provide them with better service beyond automation.
11
A|EA DC CHAPTER January 2007 yeliz2002@alum.syracuse.edu
Why Not Implement An ERP System?
SizeMS Excel, MS Access, Oracle
Mission Resources
FinancialHuman Resources- Expertise
Leadership Support for a Medium Period of TimeEnvironmental Dynamics
12
A|EA DC CHAPTER January 2007 yeliz2002@alum.syracuse.edu
Challenges Related to ERP ImplementationsORGANIZATIONAL
TECHNOLOGY
Money!!!!TimeSkills- Outsourcing? Developing internal skills? Hiring new people?Managing contractors
Functional silo’sUnderstanding organizational needsManaging changeRun the business while implementing ERP at the same time (resource)Project management within ERP contextObtaining sustained leadership support
RESOURCES
Integrating with other systems and ERP’sMaintaining ERP
Support packsFixesUpgradesCustomization
13
A|EA DC CHAPTER January 2007 yeliz2002@alum.syracuse.edu
A Case Study
You are currently in charge of your organization’s EA.Your agency’s CIO thinks that it’s time agency should get on the ERP bandwagon.Your boss puts you on the committee to evaluate ERP decision and get the organization ready for ERP implementation.You have plenty of IT & organizational experience.
…but no ERP implementation experience What would you do?
Which questions would you ask?
14
A|EA DC CHAPTER January 2007 yeliz2002@alum.syracuse.edu
Key Question: EA & ERP
How are they different?
Will they work well together or will they compete?
How do you make them work well together?
15
A|EA DC CHAPTER January 2007 yeliz2002@alum.syracuse.edu
EA and ERP - Similarities
Enterprise-wide initiativesStrategic InitiativesChange agentsRequire Business InvolvementRequire specific knowledge/expertise
Typically consultants/ external experts.
Need for ongoing maintenance
16
A|EA DC CHAPTER January 2007 yeliz2002@alum.syracuse.edu
EA and ERP Key Differences
ENTERPRISE ARCHITECTURE
Framework
Includes strategic, human, technology components among others
Helps you justify and decide on IT initiatives.
ENTERPRISE RESOURCE PLANNING
System
Includes the functionality that you want it to include (modular nature)
It is an IT initiative. (In fact it is a business
initiative)
17
A|EA DC CHAPTER January 2007 yeliz2002@alum.syracuse.edu
Coming Back to Your Case…
Your boss put you on the committee to evaluate ERP decision and get the organization ready for ERP implementation.You understand that EA and ERP are different things and that they are best employed together.How will you make them work well together?
18
A|EA DC CHAPTER January 2007 yeliz2002@alum.syracuse.edu
Some Key Questions to AskIs ERP a good fit for my agency’s mission and goals?
Cost-Benefit AnalysisWhat are the benefits of ERP?What are our goals?Is there a good match?What are the costs in terms of time, people, money?Can benefits justify the costs?What is the expected ROI?
Which ERP system is appropriate for my agency?SAP, Oracle, JD Edwards…
Define the criteria for best fitCostSupportInterface
20
A|EA DC CHAPTER January 2007 yeliz2002@alum.syracuse.edu
Can the agency handle the transition and support?Network capabilitySlow down of service delivery, potential issues, learning period.People and resources for ongoing support, upgrades, etc.
How do I secure the key skills/resources for the implementation?
Business people to be involvedIT Skills
Hire?How to Manage?Outsource?
Which company? What are the criteria to select the company?
Some Key Questions to Ask
21
A|EA DC CHAPTER January 2007 yeliz2002@alum.syracuse.edu
Some Key Questions to Ask
What are the risks? Environmental uncertainty (wars, etc.)Leadership change?Change in the staff?
What type of implementation is appropriate?
Big bangPhased
22
A|EA DC CHAPTER January 2007 yeliz2002@alum.syracuse.edu
How to Answer them Through EA
Source: Bernard, S. A. (2005). An introduction to Enterprise Architecture (2nd ed.). Bloomington, IN: AuthorHouse.
23
A|EA DC CHAPTER January 2007 yeliz2002@alum.syracuse.edu
One More Key Question & Answer
Can I get buy-in & support from the leaders?
Executive supportMiddle management buy-in
Did you involve the leaders and the middle management in the EA implementation?
24
A|EA DC CHAPTER January 2007 yeliz2002@alum.syracuse.edu
What Else Can You Think Of?
How can we use EA and ERP to support each other after ERP implementation?How else can we use EA to support ERP or vice versa?
25
A|EA DC CHAPTER January 2007 yeliz2002@alum.syracuse.edu
Resources and Questions
Yeliz ESERYEL, MBA. MSc., PMP., CPIMContact: yeliz2002@alum.syracuse.edu
http://www.cafeart.org/yeliz
Additional Resources: Eseryel, U. Y., & Wolf, N. (2005). Enterprise architecture as a context for ERP implementation. Journal of Enterprise Architecture, 1(2), 7-24.
S.U. ERP Class Website: http://istclass.syr.edu/~ist600erp
26
A|EA DC CHAPTER January 2007 yeliz2002@alum.syracuse.edu
Real Life Case Study: Welch Allyn’s SAP Journey
Started in 2002.Outsourcing Decision
All IT people are hired by Cap GeminiCIO & later Global IT Director5 Year Contract with Cap Gemini as our SAP IntegratorWhat are the benefits?What are the disadvantages?
Gap in implementationBig Bang ImplementationRoughly >$5M.
27
A|EA DC CHAPTER January 2007 yeliz2002@alum.syracuse.edu
SAP Project Time Line
Canada Go Live 11/24/2003
U.S. Go Live 2/02/2004
Europe Go Live 1
1/14/2005
28
A|EA DC CHAPTER January 2007 yeliz2002@alum.syracuse.edu
MM/PP: Materials Management/Production PlanningPLM: Product Lifecycle ManagementSD/CS: Sales, Distribution & Customer ServiceFI/CO: Financials and ControllingBW: Business WarehousePM: Plant Maintenance
SEM/EC-CS: Strategic Enterprise ManagementCRM: Customer Relationship Management
Modules Implemented
29
A|EA DC CHAPTER January 2007 yeliz2002@alum.syracuse.edu
Why Did Welch Allyn Implement SAP?
Become more efficient with new consistent system tools.A step towards better serving our customers.Bring products to market faster.Service our international customers better.SAP handles service and manufacturing businesses.Acquire and integrate other companies faster.Become more efficient and profitable.
30
A|EA DC CHAPTER January 2007 yeliz2002@alum.syracuse.edu
Summary of Benefits
Sales & Marketing: Segment Customers by Value-Focus promotionsProduct Development: Common Platforms across the world, efficient processesCustomer Care: Increase accuracy and efficiency.Operations: Incr. Efficiency, better inventory and data managementFinance: Rapid integration of acquisitions, multiple currencyHuman Resources: Improve development of critical skills.Information Services: Lower costs- manage 1 system instead of 60 legacy systems.
31
A|EA DC CHAPTER January 2007 yeliz2002@alum.syracuse.edu
Some of the Key Issues We Faced At Welch Allyn
Organizational Change ManagementSecuring resources for organizational changeCreating and delivering training—lots of it!People to do those.Managing project related documentation.Knowledge management/transfer (Super Users)
Knowledge ManagementIn an outsourced implementation environment. (Consultant-business leads)Turnover in consultants
Management of Relationships with Consultants.Getting the right consultantsManaging the communication/coordination between the company and the SAP integrator.
Business Process ReengineeringDuring the implementationAfter the implementation