Upgrading to Enterprise Edition The Process, Challenge and Benefits

Upgrading to Enterprise EditionThe Process, Challenge and Benefits

Anton ChiltonSenior Vice President – QAD Global Services

Midwest User Group

2

How do you feel when you think about your next

upgrade?

3

How do you feel when you think

about upgrading to Enterprise Edition?

4

DiscussionUpgrading to Enterprise Edition

Analysis Challenges ValueProcess &

Tools

5Analysis

6

How often would you like to upgrade?

Upgrading to Enterprise Edition - Analysis

Source: QAD Customer Survey – Jan 2013

No Fixed Time

>9 Years

6-9 Years

3-6 Years

<3 Years

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

ActualDesired

7

Desire vs. RealityUpgrading to Enterprise Edition - Analysis

80% 45%Customers who

desire to upgrade within a maximum 6

year cycle

Customers who achieve an upgrade within a maximum 6

year cycle

8

35% of customers are not hitting their upgrade

target!

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What are your upgrade plans?Upgrading to Enterprise Edition - Analysis


In Process 2014 2015 2016 >2016 No Current Plans

0%

5%

10%

15%

20%

25%

30%

35%

40%

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35% of customers have no firm plans

for an upgrade

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What are the barriers to upgrading?

Upgrading to Enterprise Edition - Analysis

Other

Lack of ROI

No Business Benefit

Business Disruption

Difficulty in Applying Customziations

Cost of Upgrade Services

Time & Resource

0% 10% 20% 30% 40% 50% 60% 70%


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Analysis ConclusionsUpgrading to Enterprise Edition - Analysis

CostDisruption

Risk

Value&

Benefit

13Challenges

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< 3 Years > 6 Years > 9 years -

5,000

10,000

15,000

20,000

25,000

Delay – Escalating Degree of DifficultyUpgrading to Enterprise Edition - Challenges

SnowdonWales UK3,560 ft.

Mt WhitneyCalifornia USA

14,505 ft.

CholatseKhumbu Nepal

21,129 ft.

Degree of Difficulty

High

Low

Time since last upgrade

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Delay – Diminishing ValueUpgrading to Enterprise Edition - Challenges

Impact

High

Low< 3 Years > 6 Years > 9 years

-

5,000

10,000

15,000

20,000

25,000

Cost & RiskValue & Benefit


User Frustrationintegrations

CustomizationsWorkaroundsSupport

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Cost & Risk DriversUpgrading to Enterprise Edition – Challenges

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< 3 Years > 6 Years > 9 years -

5,000

10,000

15,000

20,000

25,000

Delay – Growing ProblemsUpgrading to Enterprise Edition - Challenges

Impact

High

Low


Widening Gap

Lost Opportunitie

sIncreasingCost & Risk

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Tipping the BalanceUpgrading to Enterprise Edition - Challenges

CostDisruption

Risk

Value&

Benefit

19Value

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Potential Value DriversUpgrading to Enterprise Edition - Value

Business Change

Process Improvement IT Strategy Application

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Supporting Business ChangeUpgrading to Enterprise Edition - Value

Business Change


• Strategic Change• Business Rationalization• Organizational Redesign• Acquisition• Divestiture

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Driving Process ImprovementUpgrading to Enterprise Edition - Value

Business Change


• Best Practice Processes• KPI Improvement• Customer Service• Supply Chain• Production• Finance• Compliance

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Improving IT EffectivenessUpgrading to Enterprise Edition - Value

Business Change


• Improving Total Cost of Ownership

• End User Satisfaction• Lowering Support Cost• Reducing Customizations• Version/Instance Consolidation

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Application BenefitsUpgrading to Enterprise Edition - Value

Business Change


• New Features• Access to Information• Visibility & Control• Process Alignment• Reduce 3rd Party Footprint• Reduce Workarounds

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Measuring BenefitsUpgrading to Enterprise Edition - Value

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Customer Specific AnalysisUpgrading to Enterprise Edition - Value

41 Customers 96 Specific Benefits

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Benefits – Areas Identified by Customers

Upgrading to Enterprise Edition - Value

5%

20%

5%

6%

47%

8%

2%3%3%

Customer ServiceFinancial ComplianceIndustry ComplianceInventory EffectivenessIT EffectivenessManufacturing EfficiencyManufacturing ScheduleSupplier PerformanceSupply Chain Effectivenss

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Customer Benefits – IT EffectivenessUpgrading to Enterprise Edition - Value

Metric/Area # of responses

Benefits Quoted Value Gains

User Efficiency 11 • Easier navigation• Better UI• Browses & data access• New functionality• Management reporting

• 15% Staff efficiency gain

Instance/Version Consolidation

18 • Use of domains• # of instances reduction• # of versions reduction• Core model• Master Data Management

Customization 5 • Reduced customizations • 75% reduction• 30% reduction

Service Levels 7 • Improved availability

3rd Party Replacement

1 • Remove 3rd party system

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Customer Benefits – Financial ComplianceUpgrading to Enterprise Edition - Value



Financial Close 7 • Faster period close Average improvement of 33%

Financial Reporting

4 • Easier access to data• Faster production of

reports• Increased

information visibilityNew Functionality

3 • Improved AR/AP processes

• User satisfaction• User efficiency

Financial Standards

4 • Roll out standards• Improve compliance

Segregation of Duties

2 • Support clearer SOD

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Customer Benefits – ManufacturingUpgrading to Enterprise Edition - Value



Capacity Utilization

1 • Improved utilization of assets

From 75% to 95%

Master Data 3 • Implement best practices processes

• Standardized data set

Scrap 1 • Reduced defective parts per ‘000

From 0.2% to 0.1% of production output

Throughput Ratio

1 • Improve production efficiency

Schedule Accuracy

1 • Improve Planning Reduce planning effort by 25%

• Addresses global requirements• Scalable • Ability to adapt to business changes• Controls and Audit capabilities

- Role based security- Segregation of duties

• QAD’s “Go To” platform

Why Enterprise Edition?Upgrading to Enterprise Edition - Value

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Enterprise Edition - Specific Analysis

Upgrading to Enterprise Edition - Value

>150 Customers globally

Multi NationalsNational Companies

SME’s

Process ImprovementsUpgrading to Enterprise Edition - Value

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BENEFIT ENABLERDecreased manual efforts • Improved functionality

• Improved processesImproved Customer Service Levels • Full visibility of stock availability through Available to

PromiseImproved financial reporting and consolidations

• Increased analysis fields• Expanded accounting layers and reporting

Improved product costing • Multiple costing methods - e.g., periodic costingImproved returns process • Implementation of SSM

• Elimination of duplicate data entryIncreased compliance • Industry best practice process maps

• Increased functionality• Enterprise financials multi-GAAP reporting

requirements• Enhanced audit capabilities

Reduction in Risk • Implementation of a supported version• Migrate to On Demand• Improved compliance - industry process models

Process ImprovementsUpgrading to Enterprise Edition - Value

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BENEFIT ENABLERShorter financial closings • Improved processes

• Harmonized data• Increased functionality

Improved data visibility and one place access to information

• .NET UI Browses • Operational Metrics

Improved global planning • Increased functionality• Database consolidation• Improved data visibility

Improved reporting • Browses• Reporting Framework• Multiple output options

Increased business unit visibility • Fully integrated system• Standardization of data and processes

Increased decision support • Operational Metrics with drilldowns

End-UsersUpgrading to Enterprise Edition - Value

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BENEFIT ENABLEREmpowered users • .NET UI Browses

• Operational metricsImproved cross-employee knowledge • Process maps and attachments

• Ease of use, intuitive screensImproved user experience and productivity • .NET UI

• Alerting and workflow with Inbox notification• Attachments• Process maps - process visualization

Reduced end-user training time • Process maps and attachments• Online training • Ease of use, intuitive screens

CostUpgrading to Enterprise Edition - Value

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BENEFIT ENABLERCost reduction/margin improvement • Elimination of non-value added activities

• Industry best practice process mapsQuicker onboarding of acquisitions • Standard operating model

• Standardized data• Master data replication• Process maps and attachments

Reduced support costs • Consolidation of databases• Standard common platform• Elimination of localizations – internationalization• Elimination of 3rd party software• Hardware consolidation• Implementation of supported software version

TechnicalUpgrading to Enterprise Edition - Value

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BENEFIT ENABLERImproved data quality/master data management

• Data cleansing during upgrade• Metrics for ongoing quality• Master data replication

Improved interoperability • Implementation of QXtend

Improved security • Role based security• Segregation of duties• Increased audit capabilities

Reduction in customizations • Implementation of new modules• Enhanced functionality• Chance to review customization use• .NET UI

38Process & Tools

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• EE upgrade ~20-25% additional effort- Depending upon upgrade method- Delta largely based on• ‘new’ process set up• Training in new processes

EE vs. SEUpgrading to Enterprise Edition – Process & Tools

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EE vs. SE Process ChangesUpgrading to Enterprise Edition – Process & Tools

• Set Up- Finance- Global Tax Management- Customer- Supplier

• Accounts Payable- Process Supplier Invoice- Process Payables

• Accounts Receivable- Invoicing- Process Receivables- Collect Receivables

• Security

• General Ledger- Journal Entries- Period End- Inter & Cross-Company- Open Items- Mirror Accounting &

Layers- Review Transactions- Consolidations- Manage Budgets- Year End

• Cash - Use Banking- Flow & Petty Cash

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Optional Process ChangesUpgrading to Enterprise Edition – Process & Tools

• GL – Periodic Costs & Revaluation• Process Sales Orders

- Up-Sell/Cross-Sell- Correction Invoices

• Scrap• Subcontracting• Audit Trails

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• Technical• Re-Alignment• Hybrid• Re-Implementation

Approach AlternativesUpgrading to Enterprise Edition – Process & Tools

• Like for like• Perceived to be quickest and easiest• Data quality influences effort/risk • No change in:

- Business Processes- Functionality

Upgrade Alternatives - TechnicalUpgrading to Enterprise Edition – Process & Tools

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• Pros- Transaction history available- Shortest timeframe, lowest cost (with same

financials)- Opportunity to reduce customizations

• Cons- Difficulty with SE EE conversion programs- Difficult to convert older database- Data structures may limit EE financial

functionality- Little opportunity for data cleansing- Limited benefits


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• Reload rather than convert data• Opportunity to cleanse data • Facilitates EE data structures• Recommended for upgrades to EE• No change in:

- Business Processes- Functionality

Upgrade Alternatives – Re-Alignment

Upgrading to Enterprise Edition – Process & Tools

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Other than Enterprise Financials

Re-Alignment Major Activities Upgrading to Enterprise Edition – Process & Tools

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Planning ExtractData

Data

Delta &EE Training

Reload Data

Technical Training

Data Cleansing

Data alignment

for EE

Test CutoverGoLive

• Transaction History- Could be stored in historical database or

BI solution- Alternative is to develop optional load

process



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• Pros- Opportunity to cleanse/restructure data- Enables full EE capabilities- Reasonable time and cost- Easier to align data

• Cons- Historical data not migrated- Data cleansing may be time consuming



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• Based on Technical or Re-Alignment• Includes:

- Process Improvement- New modules or functionality

• Can be single or multiple projects

Upgrade Alternatives - HybridUpgrading to Enterprise Edition – Process & Tools

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51*With Re-Alignment approach

• Pros- Opportunity to cleanse/restructure data- Enables full EE capabilities- Increased benefits from new functionality- Easier to align data- Opportunity to eliminate customizations

• Cons- Historical data may not be migrated- Data cleansing may be time consuming- Increased time/cost – process enhancements


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• Start almost from scratch• Treated like new implementation• Most complex• Can be most beneficial

- Increases come at cost

Upgrade Alternatives - Reimplementation


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Upgrade Alternatives – Re-ImplementationUpgrading to Enterprise Edition – Process & Tools

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• Pros- Opportunity to start from scratch- Highest benefit- Clean data- New functionality can be leveraged

• Cons- Highest cost/longest timeframe- No historical data

Upgrade Alternatives – Re-Implementation


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• New modules or functionality• Source/target versions• Data quality• Resource availability• Budget• Available time• Standardization – current/target• Customizations

Approach ConsiderationsUpgrading to Enterprise Edition – Process & Tools

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Approach AlternativesUpgrading to Enterprise Edition – Process & Tools

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APPROACH ALTERNATIVESSOURCE TARGET TECHNICAL REALIGNMENT HYBRID RE-IMP

Pre-eB2.1 Current SE � � �Pre-eB2.1 Current EE � �

eB2.1 -> SE Current SE � � � �eB2.1 -> SE Current EE � � � �

Older EE Current EE � �

Recent EE Current EE �

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Roadmap Phasing - One ProjectUpgrading to Enterprise Edition – Process & Tools

Time

Complexity / Value

Process Optimization

New Features/Function

s

Customization Rationalization

Technical Upgrade

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Roadmap Phasing – Multiple Projects


Time

Complexity / Value

Process Optimization

New Features/Function

s

Customization Rationalization

Technical Upgrade

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• Business drivers/context• Approach• Change in hosting?• Identify:

- Resources required/available- Related initiatives- Competing projects- Optimal/Sub-optimal go live timing- All required project aspects

• Project Scope• Single/multi-phased

Planning ConsiderationsUpgrading to Enterprise Edition – Process & Tools

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• Involvement of the business• Clearly defined project scope• Formal project plan and team• Realistic budgets and timeframes• Effective Communication

- Why upgrading- When- How will it affect me?

Critical Success FactorsUpgrading to Enterprise Edition – Process & Tools

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• Planning/justification- 3-Day Q-Scan- Upgrade Q-Scan- Planning

• Project Execution- Apply Easy On-Boarding methodology & tools- Leverage upgrade experience

• Training- Technical- Conversion- Functional delta- New modules

How Can QAD Help?Upgrading to Enterprise Edition – Process & Tools

• Identify value potential- Support strategic initiatives- Business process improvement- Information access and visibility- Risk management & compliance

• Determine deployment options & value case- On Demand- On Premise

• Outline delivery plan- Conversion/Upgrade process- High level implementation plan

3-Day Q-Scan - ObjectivesUpgrading to Enterprise Edition – Process & Tools

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• Value & Benefit vs. Cost & Risk- Material value- Delay increases cost & risk

• SE vs. EE- Enterprise Edition is the future- Proven & structured approach

• Options- Approach alternatives

• Let us know how we can help

SummaryUpgrading to Enterprise Edition

Upgrading to Enterprise Edition The Process, Challenge and Benefits

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