Three Ways to Increase your Utilization and Results from JDE July 30, 2009 Eric Kimberling,...

Three Ways to Increase your Utilization and Results from JDE

July 30, 2009

Eric Kimberling, President, Panorama Consulting GroupAndy Klee, President, Klee Associates / JDEtips

Brigitte Banker, Senior Consultant, Klee Associates / JDEtips

Copyright © 2009 Panorama Consulting Group and Klee Associates

All Rights Reserved

Agenda

● Introductions●Purpose of this Webinar●Findings of Panorama’s ERP Report●Three Ways To Increase JDE Results

●Training●Organizational change management●Business process alignment

●Conducting Post Implementation Audits●Questions and Answers

2

About the Speakers

Eric Kimberling●President and Founder of Panorama

Consulting Group●15+ years of JDE and ERP experience●Panorama is an independent ERP

consulting firm, focusing on ERP selection, implementation, and organizational change management

Andy Klee● President and Founder of Klee Associates

and JDETips

● 20 years of JDE experience

● Publisher of JDEtips Journal

● Klee Associates provides public and onsite configuration-level training on JD Edwards

3

Brigitte Banker●Senior Consultant & Instructor with JDEtips●13 years of JDE Consulting, Training &

Project Management experience●EAM/Plant Maintenance, CSMS, Financials●Training audience ranges from project team

members to end users

Agenda




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Purpose of This Webinar

●Offer an understanding of common JDE implementation challenges and risks

●Provide tips on how to get better utilization of and results from your JDE investment

●Focus on implementation and post-implementation activities that will help make your JDE initiative more successful

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Agenda




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Panorama’s ERP Findings

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Source: Panorama’s 2008 ERP Report

Three-year study of over 1,300 ERP implementations across the globe

Full report available at: http://www.panorama-consulting.com/2008ERPReport.html




http://www.panorama-consulting.com/2008ERPReport.html


JDE Implementation Facts

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Agenda




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2009 Training Survey Results2009 Training Survey Results

●World Training

●Biggest Challenges

●Live Virtual vs. Classroom Training

●Certification

●Keys to Successful Training

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World is Still Here!

Hi Laura, I am interested in writing an article about

backwards migration from E1 to World A7.3 cum16.

This procedure is not supported by Oracle, but I just worked on a project one year ago where one of our business units was running an old version of E1 and we migrated it to World software A 7.3 cum 16.

The project was very successful. Let me know if you are interested in an article on this topic.

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World Classroom Training

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Your Biggest JDE Training Challenge

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Live Virtual vs. Classroom TrainingLive Virtual vs. Classroom Training

Virtual Training● Best for short periods of time – 1-3 hours● Helpful when the audience is geographically dispersed● Technology (e.g., Webex) improving in interactivity

Classroom Training● See the lights go on (or off) – non verbal cues● Increased student interaction● Students and instructors prefer this option

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Comparison of Available Configuration-Level Training Methods

www.JDEtips.com/WhyClassroomTraining.aspwww.JDEtips.com/WhyClassroomTraining.asp

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http://www.jdetips.com/WhyClassroomTraining.asp

http://www.jdetips.com/WhyClassroomTraining.asp

Live Classroom vs. Virtual Online

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JDE Certification

●Recently published a 15 page article on SAP Certification

●Status of JDE certification today

●Oracle E-business, PeopleSoft, Siebel, Hyperion

●Is certification important?

●No validation study exists

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Certification Survey

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No comment needed!

Ranked very good or better:

JDEtips University: 74%

Oracle University: 37%

Ranked very good or better:

JDEtips University: 74%

Oracle University: 37%

“I received JDE training directly from JD Edwards in Denver long before the PeopleSoft and Oracle acquisitions and rate it the best software training I ever experienced in my career to date.

However, I also want to comment that even though I have never participated in JDEtips training courses, I feel that the curriculum and training materials available through their Mastery programs are now the number one best JDE training resource available across the globe.”

“I received JDE training directly from JD Edwards in Denver long before the PeopleSoft and Oracle acquisitions and rate it the best software training I ever experienced in my career to date.

However, I also want to comment that even though I have never participated in JDEtips training courses, I feel that the curriculum and training materials available through their Mastery programs are now the number one best JDE training resource available across the globe.”

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Mastering JD Edwards

● Instructors who have real world implementation experience—it makes all the difference in what you take away from class.

● Conduct discussions on how the functionality can be used to address specific business issues.

● Hands on exercises, and manuals that are clear and easy to follow step-by-step.

● Onsite training allows us to use our own data anddirect the discussion to areas we are having problems

with and areas we would like to more fully utilize. ● I liked the ice cream and fresh cookies at the DTC. :-)

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Keys to Successful Training:Project Team Members

● Plan Training Pre-Configuration● Plan to Spend 10-15% of your budget for Training

● Assess the Needs of your Team● Public Classes vs. Onsite Training Classes

● Provide Classroom Materials

● Conduct Training Sessions● Experienced JDE Consultants● Provide Real World Examples related to Business Processes

● Evaluate the Success of Training & Materials● Allow team to provide feedback

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Ways to Improve End User Training

●Support & Budget of End User Training

●Create Job Specific Work Instructions/Job Aids

●Develop Online Training Using the UPK Tool

●Conduct Onsite End User Training Sessions

●Explain Business Process, Not the Task

●Periodically Conduct ‘Brown Bag’ Sessions

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Keys to Successful Training

• Explain the ‘Big Picture’

• Build on what the students already know

• Train the Right Users at the Right Time

• Know your Audience

• Vary the Delivery Method

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Keys to Successful Training

●Learn the Capabilities of the System●Example: Subledger Method L vs. S

●Understand the Big Picture●Example: Asset ID on Journal Entry

●Observe the Integration of the System●Example: Job Cost and General Ledger

●Explore New and Improved ways to Perform their Daily Job ●Example: Calculate Retainage

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Questions?

25

Review Poll Results: What is your preferred method of JDE training?● Virtual

● Classroom● Both● Other

Agenda




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Top Reasons for JDE Failures

● Lack of purpose for implementing ERP● Not going into the project with “eyes wide open”● Lack of executive and management buy-in● Not leveraging the “A-Team” from the business● Not choosing software that is aligned with the business and

key requirements● Misalignment between software configuration and business

processes/workflows● Lack of effective OCM and training● Weak internal and external project management● Underdeveloped business case to manage business benefits

Items in blue are directly or indirectly mitigated by an effective JDE OCM methodology

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Effective JDE Organizational Change

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Technical Approach Business Approach

Implementation Approach Slam in the system Implement quickly, but with minimal business disruption and maximum

business impact

Designing the System Define technical requirements

Define business process requirements

Training System transaction training Vs. Process and workflow training, emphasizing the system as an enabler

of those processes

Measures of Success Minimize technical bugs Minimize disruptions to business operations & maximize impact on

measurable business benefits

Organizational Change Management

Train to use system Build a variety of employee buy-in, communications, and learning tools

Recommended Approach

Effective JDE Organizational Change

Effective JDE implementation should focus on business rather than technical approach

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JDE Blueprint

• JDE project charter/vision• Business process definition• System design

JDE Blueprint

• JDE project charter/vision• Business process definition• System design

BPPs

JDE Blueprint is Foundation For OCM Activities

Business Process & Org Gaps

Performance Metrics & JDE

Reports

Change Discussion

Guides

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Key Change Management Project Activities

● Organizational Change Management is a key enabler of ensuring JDE Benefits Realization

● Begin change management activities during design, then build and continue through post go-live

● Many post-implementation root causes and corrective actions involve Organizational Change Management issues:● Lack of employee buy-in● Lack of accountability● Need to redesign job roles and descriptions● Alignment of KPIs to performance evaluations and overall

job expectations

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Key Change Management Project Activities (cont.)

● Focus on removing the obstacles to change identified in the organizational assessment● Identify issues that can be addressed via Organizational Change

Management● May require longer-term cultural changes that will not be

affected overnight

● Share key communication messages with employees throughout the project● Purpose for implementing JDE● Project milestones and status● Post go-live performance vs. targets

Questions?

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Review Poll Results: Which OCM activities have you leveraged on your JDE implementation?

● Departmental communications

● Change discussions

● Organizational gap analysis

● All of the above

● None of the above

Agenda




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Keys to Organizational/Process Change

1. Define gaps early in the JDE project● Focus on how people’s day-to-day processes and jobs will

change

2. Involve the appropriate people in identifying gaps● Include JDE experts and business users

3. Get into the operational details● Changes are more meaningful in the context of how employees

perform their jobs● Don’t be too “soft” or high-level: fully understand the process

changes● Be pragmatic

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Model High-Level Business Processes

● Document enterprise-wide business processes and pain points ● Level 1 to Level 2 detail (high-level)

● Focus on process inputs, outputs, and KPIs● Identify touch-points with people and the JDE system● Prioritize importance of functional processes● Provide hard copies of draft process documentation for

employees to “mark-up” and make comments on● Visio is a good tool to use

● Simple and easy to distribute and share

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Model High-Level Business Processes (cont.)

● Focus on “as-is,” while highlighting opportunities to improve existing processes● Helps the organization understand how business really works● Gaps and opportunities for improvement become more apparent● Allows the project team to define how “broken” processes can

be improved using JDE● Allows the change management team to better understand how

people’s jobs will change in the post-JDE environment

Focusing on “as-is” is the fastest and most effective way to define high-level processes and corresponding gaps to “to-be” JDE

environment

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Core Process Measures“Level 1”Input

Measures

Deliver Products/Services (order to cash) Output

Measures

In- Process Measures

InputMeasures

Deliver Products/Services (order to cash)

Distribution OpsOutput

Measures

In- Process MeasuresII

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Macro Process Measures“Level 2”

IIP

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Sub-process Measures“Level 3”

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StrategicPlanning &Alignment

ProductDevelopment

Sales Delivery

Human Capital Management

Information Capital Management

Organizational Capital Management

Supply Chain Manufacturing Distribution

• Major organizational and job changes

• Implement redesigned business processes resulting from ERP

Business Processes Enabled By OCM

• Define jobs and roles in the new system

• Train and communicate how processes will change at a transactional level

Role of Change Management

Cascade KPIs Throughout Organization

Corporate KPIs Tied directly to corporate-level goalsCorporate KPIs Tied directly to corporate-level goals

Sample KPIs:•Wholesale sales

and profit•Retail sales and

profit•Product

development time to market

•Sales and profit by region

•Sourcing costs•Number of product

introductions per year

Business Unit KPIs

Business Unit KPIs

Business Unit KPIs Business Unit KPIs

Departmental Metrics

Departmental Metrics

•Average inventory costs

•Number of new product designs completedper year

• Inventory accuracy

Departmental KPIs Departmental KPIs

Individual KPIs Individual KPIs Individual KPIs Individual KPIs

Departmental KPIs Departmental KPIs

•Average inventory cost by location

•Number of new designs per employee

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Questions?

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Review Poll Results: What best describes your approach to process alignment on your JDE implementation?

● Conform business processes to the software

● Conform (customize) the software to fit existing business processes

● Mix of both

Agenda




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Post-Implementation

●ERP is an ongoing process; it is critical to optimize ERP software capabilities●Go-live ≠ End of ERP Process●Examine your business processes regularly●Focus on the effect the new system has on the whole

organization, including “people”●Leverage your sources to better comfort your

employees

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Conducting Post-Implementation Audits

●Find out what business benefits your ERP systems are delivering

●Optimize the way the system is operating

● Improve the way the system supports your business

●There are three key areas you should focus on

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I. Baseline and post-go-live performance measures:

● Understand the level of ERP business benefits● Have a solid business case well before selection and

implementation● Identify areas of under-performance and

opportunities for ongoing improvement

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II. Identify ongoing training opportunities: ● Minimize the post go-live productivity drop ● Help your employees be more productive than they

were before ERP● Find out where employees are under-trained or

could benefit from ongoing training

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III. Identify and prioritize opportunities to improve business processes:

● Involve key users and stakeholders● You can always improve the process and be more

efficient and effective● Identify process pain points and follow up with root

cause analysis

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Summary

●JDE can deliver huge benefits to organizations, but implementation needs to be managed effectively

●Most JDE challenges are related to training, people, and business processes

●The three tips discussed here should be deployed during and after implementation:●Training●Organizational Change Management●Business Process Alignment

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Questions?

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Eric Kimberling, PresidentPanorama Consulting Group

[email protected]

Andy Klee, President

Klee [email protected]

970-856-4811

Brigitte Banker, Senior Consultant

Klee [email protected]

303-808-5749

mailto:[email protected]



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