Transcript Maximizing the Value From Your ERP System

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The Good, the Bad & the Ugly
GFOA Membership Survey – Key Findings
Before You Buy Perspective
During Implementation Perspective
After Production Perspective
● Enterprise Resource Planning (ERP) systems integrate
internal and external management information
across an entire organization, embracing
finance/accounting, manufacturing, sales and
service, customer relationship management, etc.
ERP systems automate this activity with an
integrated software application. Their purpose is to
facilitate the flow of information between all
business functions inside the boundaries of the
organization and manage the connections to
outside stakeholders.
Source: Wikipedia
Integrated
Applications
Simplicity and
Agility
Differentiating
Public Sector
Functionality
Powerful
Embedded
Analytics and BI
Financial
Management
Human Capital
Management
Procurement
Budgetary
Control
Grants &
Project Mgmt.
Works the way you
need it to with role
based processes
Simple to use
maximizing access
to data by all users
Tailored to meet
your needs
Get the right
data to decision
makers
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Tailored Role Centers with Performance Dashboards
Real Time Financial Management (GL, AP, AR, CA, FA, IN, TM)
Public Sector Procurement-to-Pay Cycle with Sourcing
Fund Accounting with Encumbrances/Pre-encumbrances
Flexible Chart of Accounts Serves Both Central & Dept. Reporting Needs
Budgetary Control for Appropriation, Allotments & Managerial Budgets
Budget Planning & Budget Formulation
Multi-Year Project Accounting, Grants & Contract Management
Travel and Expense Management with Pre-Authorizations
Self Service Portals for Employees and Vendors
Departmental Customer Billing, Receivables & Point-of-Sale Cashiering
Treasury Accounting with Pooled Cash for Multiple Funds
Integrated Workflow, Compliance Center & Audit Workbench
Microsoft Office Interoperability
Business Intelligence and Reporting
Human Capital Management, Position Control, Payroll
● Only 3% of Governments are “Happy” with their
Legacy Financial Systems
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56% Indifferent
39% Unhappy
● 67% of Governments have held on to Legacy
Technology longer than Expected
● Reasons
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69%
19%
6%
6%
Cost
Past Customizations
Familiarity
Reporting Requirements
52%
ORGANIZATONS
THAT HAVE
RECENTLY
MODERNIZED
69%
EXPECTING OR
EXPERIENCING
PROJECT DELAYS
● Define Project Success & Anticipated Benefits
● Executive Sponsorship
● ERP Project Implementation Leadership
● IT or Business Leader
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Department & Agency User Buy-In
Project Completion within Current Administration
Sufficient Project Funding
Project Staffing (Both Project & Current Operations)
IT Strategy – Consider the Cloud
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IT as a Service – Guaranteed Service Level Agreements
No more Upgrades, Just the New Features
Run Your Business, Not Your Infrastructure
● Traditional On-Premise Solution
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License the Software
Install on your Hardware in your Data Center
Data Physically Located in Your Data Center
Access via Your Network
● Hosted Solution
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License the Software
An Application Service Provider Installs the Software in their Data
Center
Data Physically Located in the Provider’s Data Center (Cloud)
Access via the Internet
● SaaS – Software as a Service
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Subscribe to the Software Solution for a Monthly Fee
Data Physically Located in the Provider’s Data Center (Cloud)
Access via the Internet
● Vendor/Customer Research
● Obtain Vendor Demos BEFORE the RFP Development
● Customer References – Both Successful & Failed Projects
● Don’t Count Out New Technology Solutions
● RFP Development Options
● Checklist vs. Essay – Focus on ‘How’ not ‘What’
● Split vs. Combined Procurements
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Purchase Software First
Separately Select the Best Integrator
● Acquisition thru GSA, Sole Source or State Contracts
● Select an Independent Vendor for Change
Management
• Choose a System Built for Government
• Buy Vanilla – No Customizations
• Any Customizations should be Limited to Regulatory
Requirements
• Beware of Best Practices Claims
• Computer Speak for Software is too Inflexible to Adjust to
Your Business Needs without Substantial Customizations
• Cost Evaluation Criteria
• Include Both Application Software Licenses AND Database
Software
• Reduce Maintenance Costs
• Do NOT Purchase Additional Modules until you are Ready
to Implement any Extended Functionality
• Prioritize Ease of Use & Agility to Change
● Implement Financials Only First
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(Includes Procurement, Budget, Fixed Assets)
● Implement Human Capital Management
Second
● Defer Extended Functionality
● Reduce Requirements for 3rd Party ISV Solutions
● Utility Billing, Business Licenses, Tax Collections, etc.
● Direct Correlation between Extended
Functionality and Dissatisfaction
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Tends to delay projects, lower productivity, and
promote shelf-ware—software that goes unused
• Communicate Project Activities & Status to ALL
• Partner with Your Vendor & System Integrator
• Your Work Plan and Schedule is Just a Plan
• Adjust as Necessary
• LIMIT Customizations to Regulatory Requirements
• Minimize Change Orders – Limit only to items not
included in RFP
• Leverage the Value of Shared Services Capabilities
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Project Planning
Project Management
Software Installation & Testing
Business Process Analysis
Change Management – Policies & Procedures
System Configuration
System Interfaces
Data Conversion
User Training
System Acceptance Testing
Production Readiness & Go Live Operations
Post Implementation
• Adopt Technologies that You Commonly Use
• Do NOT Go-Live at Beginning of the Fiscal Year or
Calendar Year (Comprehensive Data Conversion)
• Implement Business Intelligence FIRST
• User Training – Focus on Ease of Use – Not
Complex or Rare Exceptions
• Improve User Adoption with User Inclusion
• Recognize and Plan that the Project is Only Half
Way Complete at Go-Live Point
• Maintain the Partnerships with Your Software
Vendor & System Integrator
• Demand Accountability from Software Vendor
• Software Bug vs. Enhancement
• Beware of ‘Works as Designed’
• Make Sure Your Employees are Proficient with
Your System
• Continuous & Refresher Training
• Training Certification Program
• Obtain Software Vendor Demonstrations on
Current Product – See what the system is capable
of
• Validate Internal Controls
“Show Me the Money”
● Integrity of Disbursement Name Reporting
● Test Vendor Name Reporting Maintenance
● Duplicate Invoices Numbers & Payments
● Test Duplicate Invoice against Multiple Suffixes
● Prohibit Duplicate Document Numbers-Use
Sequential System Assigned Document
Numbering
● Prohibit Invoice Adjustments
● Enforce Corrected Invoices or Credit Memos
“Pay Me Only Once”
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Ghost Employees
Require Periodic Paycheck Signing
Payments to Terminated Employees
High Overtime
Same Bank Account for Two Different
Employees
● Hired in May, Paid in April
“Who Changed What & When”
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Review Before & After Validations
Vendor File Changes
Customer File Changes
Document Numbering Tables
Workflow Changes
Security File Updates
Fiscal Period Opening/Closing
“Who Can Access What”
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Password Security
Password Expiration
Role Based Security
Segregation of Duties through Security
Workflow Approvals – Role vs. Individual
Dollar Limit Thresholds
Delegation During Absences
“Follow the Money Trail”
● Daily Import of Bank Activity
● All Activity – Checks, Deposits, Wires
● Checks Cashed but Not Recorded in ERP
● Implement Positive Pay with Your Bank
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Continually Meet with End Users
Interact with Similar Organizations
Maintain Business Intelligence Dashboards
Minimize Software Customizations
Explore Cloud Alternatives
Continue to Expand Shared Services
Test & Retest any Changes and any One Time or
Year End Processes
● Stay Current with Your Vendor’s Software
Releases
● Understand the Vendor’s Future Product
Roadmap
Real impact for better government
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