18-Jul-20

Practical Training
on
Business Process Mapping
and
ERP Project Management
Bulbul Ahmed
Leader of Change | ERP Consultant | Business Analyst
Supply Chain, Inventory & Operation Management Specialist

LinkedIn: [Link]/in/ipebulbul | Facebook: [Link]/ipebulbul

[Link]

Objectives of the Training (3 Sessions)

Develop ability to map the business processes

Develop ability to identify business requirements

Develop ability to manage and control ERP project

Develop common understanding on ERP among all people

Learn how to prepare for ERP success

[Link]

1
18-Jul-20

Agenda for Session 1

Aligning
ERP Facts
People

Challenges ERP Project

in ERP Team
[Link]

ERP Facts

[Link]

2
18-Jul-20

ERP Fact: 75% ERP Projects Fail

Statistics applicable Who is responsible
Failure means Results of failure
for for failure
•Europe, America •Costs significantly •Software •The client company
•Rest of the world exceeded the budget vendor/consultant (95%)
•Timeline extended blames the client •Software vendor/
several times •Client blames the consultant (5%)
•Not getting expected software
results vendor/consultant
•Software
When failure realized vendor/consultants
make money Main reasons of
•Client wastes money, failure
•Before go-live (never
go-live) time and resources •Management not
•After go-live aligned
•Several years after go- •No internal project
live team

[Link]

ERP Fact: Change is inevitable

Where should be Changes in software
Why change? changes • Configuration
• In Software • Customization
• In your company
Software developed by people who
never worked in your company
Software not developed following
your company’s process Changes in your If company doesn’t change
company • Too much customization
Different companies in same
industry have different processes • People • Lot of expenses
• Process • Software architecture is damaged
Bangladeshi companies do not • Culture • Software cannot be improved
follow standard processes • Software not aligned with business
• Information
Existing processes never fit 100% • Technology
with software

[Link]

3
18-Jul-20

ERP Fact: Vendor/Consultant cannot drive the project

Only you can drive

• You already know your people
• You already know your process
Why they cannot drive • Learning process is tougher for
the vendor/consultant
• They never worked in your • Learning software is easier for
company you
Real scenario • They are smart but they don’t • You must learn the software,
have time anyway, better learn early
• Same software fails in one • It’s impossible for a person to
company, but succeeds in • You have time, they don’t
learn the entire company in few
another • You understand your pain points
weeks
• Sale consultant fails in one • Cannot change client’s people
company, but succeeds in • Cannot change client’s process
another
• Doesn’t realize your strategic
• Consultant forgets about your goals and future
project after go-live
• They can only customize your
• You carry the ERP for 10 years software to a certain extent
[Link]

ERP Fact: Always goes over budget and gets delayed

Realistic Example Why delays Why overbudget Bitter truth

Budget: 2 years, 40 crores Too much hurry during Not because of license cost The less you know the
taka, 100% business planning and preparation Not because of hardware more money vendor makes
process Incomplete business cost Vendor and consultants
Actual: 3 years, 60 crores analysis It’s because of consultancy love unsmart people
taka, 40% Business process Incomplete business cost
requirements identification Lot of customizations after
Not all scenarios and cases go-live
considered Re-work and re-analysis
Lot of discovery after go- Solving problems that
live could have prevented
Lot of changes after go-live
[Link]

4
18-Jul-20

About myself

[Link]

[Link]

10

5
18-Jul-20

Aligning People

[Link]

11

Aligning people: Top management

Why they are needed here Their involvements If they are not aligned

• ERP is ultimately for • Match ERP solution with • No one else will be
business management, business strategy and aligned
not for users’ ease Goal • Lot of resistance
• Management has more • Understands what it takes • Software becomes burden
requirements than users to accomplish ERP • Re-work and re-
• You must face them • Promote the project construction
anyway, better face early • Empower the project
• They approve the budget team
• The houseowner must • Eliminate barriers and
speak before building the clear the path
house • Take responsibility for the
result

[Link]

12

6
18-Jul-20

Aligning People: Process Owners

Why aligning them The difficulties What to align

They are running the functions Everyone thinks himself as best The mind-set for ERP
They are owners of their own We cannot see our limitations The expected results from ERP
domain One process owner is enough to The approach of ERP
Management depends on them stop the full project implementation
Management value their opinion The changes needed for ERP
End users follow their leads The departmental benefits from
They can get things done easily ERP
The features and limitations of
software

[Link]

13

Aligning People: Organizational Change Management (OCM)

Training is the best

Training, Training, Training

tool for OCM
Everything must be
Best way to align: OCM

Training to have the

managed, even the
People are always common knowledge
Behind the scene

changes
resistant to change Training can bring
OCM helps to change
Everyone has their people in the same
people from inside
own ideology and page
desire People don’t feel the
Training can develop
change, they feel
People don’t want to common
adventure
listen understanding
People learn to know
Not all people can see Common understating
their limitations
the future is exactly what
People learn to accept needed in big projects
Sudden change is changes
always unwelcomed Training helps to
improve process,
People don’t like
productivity and
external person
efficiency
makes changes
[Link]

14

7
18-Jul-20

Challenges in ERP

[Link]

15

Challenges
People

Very complex,
One of the covering Technology Process
toughest entire
projects company’s
processes Multi-
dimensional
Vendor
Lot of
Whatever can
go wrong, will
Consultant challenges Software
variables &
go wrong –
obstacles
Murphy’s law

Information Culture

[Link]

16

8
18-Jul-20

ERP Project Team

[Link]

17

Project Team: Structure

Executive
Sponsors

Steering
Committee

Client’s Project Process

Manager Owners

Vendor’s Project Vendor

End Users
Manager Consultants

Business
Analysis Team

IT Team

[Link]

18

9
18-Jul-20

Project Team: Business Analysis Team

Who Roles Why not Consultants

Best people from functional Map current processes & They can never identify all
departments redesign the processes requirements
Knows the advantages of technologies Design the software They cannot change business
Detail oriented, organized, logical requirements processes
thinker, quick learner Configure software as per They cannot even manage
business requirements people to get into a meeting
Train people on business
processes & software
Test software

[Link]

19

Practical Training
on
Business Process Mapping
and
ERP Project Management
Bulbul Ahmed
Leader of Change | ERP Consultant | Business Analyst
Supply Chain, Inventory & Operation Management Specialist

LinkedIn: [Link]/in/ipebulbul | Facebook: [Link]/ipebulbul

[Link]

20

10
18-Jul-20

Objectives of the Training (3 Sessions)

Develop ability to map the business processes

Develop ability to identify business requirements

Develop ability to manage and control ERP project

Develop common understanding on ERP among all people

Learn how to prepare for ERP success

[Link]

21

Agenda for Session 2

Components
What is ERP,
of ERP
Really
Software

Defining ERP ERP Rollout

Requirements Strategy

[Link]

22

11
18-Jul-20

Components of ERP Software

[Link]

23

Component Types

ELECTRONIC PRINTABLE LIST / COLLECTION REPORT

DOCUMENT DOCUMENT

[Link]

24

12
18-Jul-20

Defining ERP Requirements

[Link]

25

Requirements, Costs and Priorities

Expensive
Automatically generate PO
Integration of ERP with Asset
and email to supplier
Management system
without human interaction

Low Priority High Priority

Nice to have Must have

Medium Priority High Priority

See the pending POs by See the list of empty

default in the list locations

Cheap [Link]

26

13
18-Jul-20

Requirements of ERP

ERP
Whole Organization
SYSTEM

All Departments | All Processes | All Scenarios/Cases | All Documents | All Information
Everybody in the process records or retrieves information

Some requirements missed – ERP will not work

[Link]

27

Results of Incomplete Requirement

Over Budget and Client’s
Blame game Realization
Delays Dissatisfaction
• New requirements • Has to run both • Cannot execute all • All losses are on
after go-live manual system and cases client’s side
• Undiscovered ERP • Software become • Vendor and
scenarios • Double entries out-of-work Consultants have
• Too much • More work than • Client, Consultant almost nothing to
customization manual system and Vendor blame loose
• Re-configuration • No trust on system each other • Identifying complete
• Re-analysis • Incomplete requirement is the
management report only way to success
• Timeline extended
• Better client identify
their own
requirements

[Link]

28

14
18-Jul-20

Identification of Requirements: 3 Methods

METHOD 1: QUESTION & ANSWER METHOD 2: COPY & PASTE METHOD 3: ANALYZING, PROCESS
SESSION MAPPING & VALIDATING

[Link]

29

Method 1: Question & Answer Session

Steps Number of iterations The Facts

Several people get into a room for 1 or 2 People cannot explain their complete
interview needs in meetings
Consultant asks his listed questions People cannot explain full process
People answer from their desire with all steps from memory
People express their additional needs Chances to forget important things
Chances of unnecessary talking

[Link]

30

15
18-Jul-20

Method 2: Copy & Paste

Steps Iterations The Facts

Consultant open a copy of document 1 or 2 Different companies in the same
used in past project industry have different requirements
Consultant sends a questionnaire to People are different
people Processes are different
People copy-paste answer from Culture is different
somewhere
Existing technologies are different
Consultant copy-paste from answer
sheet and previous document

[Link]

31

Method 3: Analyzing, Process Mapping & Validating

Steps Iterations Facts

Business Analyst (BA) Team start 5 to 15 All must-have requirements are
brainstorming identified
BA team have workshops and Most of the nice-to-have
meetings with Process Owners requirements are identified
BA team study existing documents, All scenarios/cases are identified
spreadsheets and reports No major changes required after go-
BA team study existing organizational live
structure No chance to get things missed
BA team study available technology
options
BA team creates process maps
BA team gets validations from
Process Owners
[Link]

32

16
18-Jul-20

Example of Process Map

[Link]

33

Advantages of Process Mapping

People Process Technology

• Visualization of all • Understand current • Identification of steps
responsible persons processes where ERP could be utilized
• Understanding necessity of • Visualization of out non- • Identification of links
each role value-added steps between different software
• Visualization of difficulties • Visualization of problems • Identification of
faced by people and improvement configuration and
• Visualization of non-value- opportunities customization needs
added responsibilities • Redesign new process
• Redesign organizational without any trouble
structure without any • Identify complete business
issues requirements

[Link]

34

17
18-Jul-20

ERP Rollout Strategy

[Link]

35

Project Rollout: Strategies

Phase
Big Big-
by
decision bang Implement full ERP
Right decision software in the phase Implement ERP in
must be taken entire company at 2 or more phases
one shot

Otherwise ERP will Implement – by

surely fail and module | by site |
disrupt the by business
business process

[Link]

36

18
18-Jul-20

Rollout Strategy: Which one is best

Depends on the
Big-bang is risky characteristics
Answer varies of the company
Phased is time consuming from company
No fixed answer to company
which strategy
Check readiness on is the best.
areas to take decision
• People Which one suitable for
• Process Going Big-bang will not be the right
Bangladesh?
choice for Bangladeshi companies
• Culture
• Most of the managers & planners
• Software not efficient and not well-
• Information visibility Phased strategy is the best for
educated
Bangladeshi Company
• Technology • Processes are not standardized
• Don’t follow manufacturing best
practices
• Network and IT infrastructures are
also not very strong
[Link]

37

Practical Training
on
Business Process Mapping
and
ERP Project Management
Bulbul Ahmed
Leader of Change | ERP Consultant | Business Analyst
Supply Chain, Inventory & Operation Management Specialist

LinkedIn: [Link]/in/ipebulbul | Facebook: [Link]/ipebulbul

[Link]

38

19
18-Jul-20

Objectives of the Training (3 Sessions)

Develop ability to map the business processes

Develop ability to identify business requirements

Develop ability to manage and control ERP project

Develop common understanding on ERP among all people

Learn how to prepare for ERP success

[Link]

39

Agenda for Session 3

Costs in ERP ERP Software

Project Selection

Roadmap of
ERP

[Link]

40

20
18-Jul-20

Costs in ERP Project

[Link]

41

ERP Costs in 3 Categories

Different Costs in ERP (%) Consultants take
money for every
moment they spend
• It doesn't matter how
Software
25% efficient they are
Software
Hardware
Hardware
10% Consultancy
Consultancy Consultancy cost is
65%
never-ending
• Occurs not only before go-
live and but also 2-5 years
after go-live!

[Link]

42

21
18-Jul-20

ERP Software Selection

[Link]

43

Software Selection Mindset

If software
Be skeptic with the Select the best
functionality doesn’t
consultant, not software, not the
match with business,
emotional best sales team
nothing else matters

Murphy’s law:
Maybe means won’t If cannot show, then
whatever can go
be doesn’t exist
wrong, will go wrong

[Link]

44

22
18-Jul-20

Software Selection: RFI / Bidding Document components

Must-have Software
Project Scope Expected Results
Capabilities

Strength of Software Technology used in

Detail Requirements
Package Software

Implementation
Software Support Vendor’s viability
Support

Pricing

[Link]

45

Software Demo Scoring Method

0 – Doesn’t satisfy at all

1 – Partially satisfy, workarounds are not clear

2 – Partially satisfy, workarounds are clear

3 – Fully satisfy without any workaround

[Link]

46

23
18-Jul-20

Roadmap of ERP

[Link]

47

ERP Roadmap: 3 Stages

Preparation Planning Implementation

[Link]

48

24
18-Jul-20

ERP Roadmap: Preparation Stage

Project Organizational Structure

ERP Strategy

Software Selection
Organizational Change Management
• Client’s • Aligning senior • Steering • ERP Package
ownership management Committee • Add-ons
strategy • Aligning middle • Project Manager • Database
• Vendor management • Business Analyst
management • Common Team
strategy knowledge on
• People ERP
development • Understanding
strategy roles of
consultants
• Understanding all
costs in ERP
• Understanding
reasons of failure
• Understanding
the facts
• Understanding
the challenges

[Link]

49

ERP Roadmap: Planning Stage

Organizational Change Management
Knowledge Transfer
Rollout Plan

Technology plan

• Scope • Developing • Setting the • Cloud or on-

• Deliverables Business measurements site decision
• Timeline Analysts of Success • Acquisition of
• Budget • Current • Setting the Server
process expectations • Acquisition of
mapping • Training on Data Capturing
• Software best practices Tools
training to • Training for
project team process
standardization

[Link]

50

25
18-Jul-20

ERP Roadmap: Implementation Stage

• Responsibility • To-Be Process • Configuration • Building SOPs and
• Process • ERP Blueprint • Customization Manuals
• Technology • Custom Program • Report & Printout • Training Process
• Master Data Development Owners
• Initial Testing • Training End Users

Standardization Design Construction Training

• Scenario Testing • Data Migration

• Conference Room • Post Go-live
Pilot Support
• Bug-fixing

Testing Cutover

[Link]

51

Best Approach of ERP

[Link]

52

26
18-Jul-20

Traditional Approach vs. Best Approach

Initial Plan Software and ERP Implementation Re-selection of Re-implementation
Technology Selection Software and
Technologies
•Rollout Sequence •ERP Solution •Discrete interviews •ERP Solution •Re-configuration
•Budget •Configuration by •Add-on packages •Customization
•Timeline consultant •Hardware •Report
•Project Team •Customization (Printers, PDAs) development
•Training by •Printout
consultant development
•Data migration by •New Plan and go
consultant back

Strategic ERP Organizational Standardization of Software and ERP Implementation

Implementation Change the process Technology
Plan Management Selection
•Implementation •Education and •Mapping the •ERP Solution •Blueprint and
approach common process •Add-on packages documentation by BA
•Measurement of understanding on •Prepare SOPs •Database •Configuration by BA
success ERP •Process redesign •Customization
•Hardware (Server,
•Rollout Sequence, •Aligning the top •Set clear PC, PDAs, Printers, •Report and Printout
Timeline and management responsibilities CAMS) development
expectations (MD, CEO and
•Consultant •Training by BA
•Project Team and other Chief
Officers) •Testing by BA
Steering
•Aligning middle •Data migration by BA
Committee
managements •Data Monitoring by
•Budget
(HODs and Power BA
Users) •User feedback and
•Identify and improvements by BA
Develop business
analysts [Link]

53

27