Transcript From a Fistful of Dollars to The Good, The Bad and The

The good, bad and ugly of
successful implementations of SAP
Two hypotheses are proposed
(& do these differ for an upgrade ?)
Annabel Carle
Communications Manager
for Corporate Finance Division &
Integrated Administrative Systems
Note: Please use Powerpoint’s notes facilities
(view>notes pages) to view the full content of this
workshop
1
What will be covered today
• Background to Monash’s implementation
– Facts & Figures
– Monash change management and training
• Perceptions of implementation success
across higher education - 2 hypotheses
• How do these differ for an upgrade?
Note: Please use Powerpoint’s notes facilities (view>notes pages) to
view the full content of this workshop
2
Monash implementation facts
and figures
• In 2000 Monash
– had 43934 students, 5205 staff
– SAP R/3 4.0b was implemented at its 6
Australian major campuses and a number
of off campus hospital sites
– We trained 1300 users by ‘go live’ 1 July
1999
3
Executive
Steering
Committee
Steering
Committee
Assistant to
Director
Audit & Risk
Management
Project
Director
Exec. Project
Consultant
Quality
Assurance
Manager
Project
Manager
Monash SAP
Consultant
Project
Assistant
Client Liaison
Manager
Training and
Documentation
Finance
Team Leader
& Change
Manager
Finance
Team
HR
Team Leader
& Change
Manager
HR/ Payroll
Team
Student
Team Leader
& Change
Manager
IT
Team Leader
Students
Team
Technical
Support
Reference Group - Key Users and Site Representatives
4
The Printer’s Motto
Pick any two
5
The ASAP methodology
6
What did Monash Implement?
In July 1999
• Fi, Co, FM, HR, MM
• The modules are fully integrated and
share a common Chart of Accounts
7
Monash’s SAP Change management:
What were the basics?
• Process standardisation across the University
• Client Liaison and Change managers appointed at
commencement of project
• ASAP methodology (modified to suit!) - Change and training
strategies and project plans developed before anything else!
• Getting involvement & ownership of end users
• Development of in-house training and documentation
• Original goal was to employ Monash staff as training &
documentation staff to work closely with SAP consultants
8
Monash’s SAP Change management:
What were the basics?
Communicate!
– “Constant communication battle. You communicate, then you
train, then you communicate some more (Hammer 1988)
– “Communication is via words AND deeds backing up the words…”
(Kotter 1995)
Be flexible, listen to users, the project process teams,
and be honest!
– No maps for change - what’s right for one implementation
is not right for the next
Manage Expectations!
9
Perceptions of implementation
success across higher education 2 hypotheses
10
Hypotheses
1. The successful implementation of an
ES system at a higher education
institution, such as Monash University,
is due to a number of key factors and
cannot be attributed to any single
factor
2. To release the full potential of SAP,
higher education institutions have to
continue to make further investment in
the product.
11
We tend to seek easy, single-factor
explanations of success. For most important
things, though, success actually requires
avoiding many separate possible causes of
failure.
12
What factors are key to a
successful implementation?
Four major themes are identified in the
literature as fundamental to successful
implementation of enterprise resource
planning.
1. To obtaining sponsorship from key
stakeholders, this concern is common to
technology project management in general.
2. aligning project design with the
organizations business objectives, is a
consequence of the design of ERP
13
What factors are key to a
successful implementation?
3. training personnel on organizational, and
not just technical, issues is intimately tied to
the notion of best practices.
4. evaluation issues stem from the difficulties of
demonstrating the measurable business
value of information technology.
14
Factors to identify as fundamental to a
project’s success
Individual
Organisational
Technological
Methodology
The best people
End users on the team
Platform sizing
Proper scope
Backfilling
Communication with
users
Testing tools
Leadership and
commitment
Single location
Documentation and
training internal
Integration testing
before releasing
changes
Budget for
consulting and
training
Good SAP
consultants
Breadth and depth of
training
Do not modify code
Overseas contacts
Scoping SAP in a University Environment: Lee Schlenker 1999
15
Are these factors relevant?
• From your own experiences
– Would you amend any of these factors
– Would you add any others?
• Is the first hypothesis confirmed?
16
Hypothesis 2
To release the full potential of SAP,
higher education institutions have to
continue to make further investment in
the product.
• How/why did Monash reach this hypothesis?
• Is it supported by the literature?
17
How was the hypothesis reached?
…..we surveyed SAP Users. The key
goals of the survey were:
•
•
•
•
•
•
Are there any business benefits/advantages yet?
When do users believe the benefits will be met?
How often is SAP being used?
Are staff confident in use of the system?
Are the available reports what staff need?
Have there been any process time and cost savings
yet?
• Is the best use been made of the system?
• What SAP developments do staff want next?
18
How was the hypothesis reached?
….Who did we survey?
Utilisation of SAP by SAP trained staff
27%
60%
13%
Never logged on
No log-on in 2000
Users in 2000
19
How was the hypothesis reached?..
When will the benefits of SAP be met?
Monash’s May 2000 Survey
Has been met/Will be met within 1 year
32%
Within 5 years
Never
16%
6%
47%
Cannot tell
% of respondents
20
When will the benefits of SAP be met?
Benchmarking Partners 1998 Survey
Has been met/Will be met within 1
year
46%
Within 4 years
More than 4 years
54%
4%
% of respondents
21
How many hours per week are you using SAP?
Results from Monash 2000 Survey
More than 14 hrs pw
8 to 14 hrs pw
4 to 7 hrs pw
12%
10%
14%
1 to 3 hrs pw
29%
Less than 1 hour pw
36%
22
When do frequent and infrequent users believe improved levels of service
will be be met?
Results from Monash May 2000 Survey
26%
Within 5 years
11%
Usage more than
1 hr pw
21%
Has been
met/within 1 year
7%
Usage less than
1 hr pw
49%
Cannot tell
69%
4%
Never
12%
23
Areas of Knowledge Management
(ROI)
Percentages are not exact: This chart is for use as a visual aid only
Intangible gains
(higher morale,
reduced turnover and
improved hiring)
Soft gains (improved
customer service, more
productive efficient work,
reduced disruption,
increased productivity)
Hard gains (patents,
copyrights, intellectual
property, propriety trade
secrets)
Knowledge Management Ch 12 - Alan Radding Computer Technology Research Corp
24
What are the greatest business advantages to be gained eventually from
the introduction of SAP?
Results from Monash’s May 2000 Survey
Standard Admin systems
43%
Better Productivity
39%
Information accessibility
37%
Funds/grant management
29%
Faster PO cycle
26%
Better for queries
23%
Can do the job better
22%
Legacy systems integrated
18%
Better business processes
16%
Better Fin year close
13%
Resolved Y2K
13%
Manage Assets better
13%
% of respondents
25
Why did your company invest in an enterprise
solution?
Results from CEO Survey
67%
Improve information accuracy and availability
61%
Improve management decision making
51%
Reduce cost/improve efficiency
38%
Upgrade technology
31%
Resolve tactical issue (e.g. Y2K)
24%
Grow revenue
Haven’t done it yet
Other
15%
4%
Mission Critical: Realizing the Promise of Enterprise Systems - Thomas Davenport
26
Expected Capabilities Upon Completion of ERP
Program
Results from Benchmarking Partners Survey
70%
Improved quality/visibility of information
Integrated business processes or systems
37%
Improved business processes
37%
31%
Standardised information systems/platform
29%
Improved customer responsiveness
25%
Year 20000 compliance
24%
Reduced cost or increased productivity
Support for supply/demand chain processes
Support for globalisation
Construct technology infrastructure
20%
17%
15%
ERP’s Second Wave: Maximising the Value of ERP-Enabled Processes - Deloitte Consulting
27
What is needed for you to make the best use of SAP?
Results from Monash May 2000 Survey
Improve personal SAP skills
49%
Improve Financial reports
25%
Improve HR reports
24%
Other
21%
More resources to make SAP
work for us
20%
Improve SAP skills of your
staff
17%
Technical improvements
13%
Improve accuracy of data
entered
11%
% of respondents
28
How the time and cost savings for the
electronic availability of reports from SAP
compares to that from the legacy systems
40%
35%
30%
25%
Cost Savings from Electronic Availability of
Reports
20%
Time Savings from Electronic Availability of
Reports
15%
10%
5%
0%
Very poor
Poor
About the same
Good
Excellent
29
Comparison of SAP’s Management
Reporting Information with that from the
Legacy systems
CRITERIA
Very poor
& Poor
About the
same
Good
& Excellent
Relevant to needs/provides
required information
HR
Finance
33%
11%
33%
27%
34%
62%
Accurate data
HR
Finance
24%
6%
30%
20%
46%
74%
Consistent data
HR
Finance
24%
8%
33%
24%
43%
69%
Real time
HR
Finance
20%
10%
29%
15%
52%
76%
Information accessibility
HR
Finance
39%
20%
29%
26%
32%
45%
Rapid responsiveness of
system
HR
Finance
19%
9%
25%
24%
57%
67%
30
What do we still need to get it done
better?
– On going time, energy, resources and
commitment/agreement from senior
management
– need long term, on going client liaison/change
management
– agreement that we need to develop best practices
now that the base models are in
– need to change the ways managers and their staff
view their work
31
Life begins after implementation
Make sure you’ve planned and are
resourced for the 12 months post
implementation and beyond, that is if
you want to get a return on your
investment
32
Hypothesis 2
• How has it been in your university?
• Is the hypothesis “To release the full
potential of SAP, Monash University (or
any other higher education institution)
will have to continue to make further
investment in the product.” confirmed?
33
What is the SAP Upgrade bringing and
what can be planned after
• Essentially a technical upgrade of SAP from
4.0b to 4.6 c ‘go live’ at this stage is
planned for April 30 2002
• In addition a few SAP fixes will be applied
• Profit Centre Accounting being configured
ready for introduction of Strategic Cost
Management in Faculties in Jan 2003
34
Reduction of Infrequent users
• As a result of the May 2000 survey we have
promoted strongly to the senior staff the
need to critically look at the numbers of SAP
users
• Are infrequent users a good use of
faculty/division time & resources?
– As a result the numbers of users will be reduced
by 200 at the time of the Upgrade and the
numbers of roles to which staff have access, will
have been streamlined
35
What is the SAP Upgrade bringing and
what can be planned after
• CBT training developed for:
–
–
–
–
–
–
Introduction & Navigation
Approvals
Good receipting
General ledger (General Journals/IDN)
Reporting principles
HR Display access
36
What is the SAP Upgrade bringing and
what can be planned after
• On-line help has been redeveloped.
– On-line and SAP can be viewed side by side
– Total review of all content to meet end user
requests for improvement
37
What are the other key issues being
encountered?
• Reporting is still an issue for Senior Staff
– Need easy to access and configure reports
– with professional layout
• it is hoped it will be addressed post upgrade
with a suite of web based reports
38
What are the key issues for the Upgrade
to 4.6?
• What can Monash learn from those of you
who have already upgraded to 4.6?
– what went well?
– what did not?
39
Where to next?
• Post Upgrade, there is a budget for Business
Development. There are a number of
competing requests which include
–
–
–
–
–
E-procurement and expansion of E-Sales
Archiving
Document Imaging
Decentralisation of HR leave and appointments
Introduction of ESS (or expansion of E-services)
40
Summary: How can we assess
where we are going?
41
The Four “Ares”
Alignment
Are we doing
the right
things?
Are we doing
them the right way?
Integration
Benefits
Are we getting
the benefits?
Are we getting
them done well?
Capability/Efficiency
The Information Paradox: John Thorp
42
Questions?
43
Bibliography
44