Transcript Professional Business Analyst Skills (IS 6008)
IS Consulting Process
(
IS 6005
) Masters in Business Information Systems 2006 / 2007
Programme in Professional Information System Practices
Fergal Carton Business Information Systems
• Revision class • Reading list
This week
MBS (BIS) / 6005 / IS Consulting Process
Topics covered 1
st
term
•
The IS Consulting Business:
What does the IS Consultant do?
•
Segmenting consulting practice (eg. Vision)
•
Role of consultants on PPARS
•
Typical asssigments
•
PCB example
•
GAP analysis (eg. UCC)
•
ERP Projects: scope, resources, timescales, phasing
•
Consultant skills (analytic, technical, project)
•
Consultant tools
•
Identifying unique features of business
• • •
Managing Client Engagements:
Requirements analysis and understanding the client goals •
Handouts
Task definition and project resources •
SIB
Preparing and presenting the solution options •
In-house vs custom
MBS (BIS) / 6005 / IS Consulting Process
Consulting practice in Ireland
• Segmenting the market – Emphasis on services (from Helpdesk to ASP model) – Any other research on market? – Homework on Vision • Typical consulting assignments • Role of consultants • Perspectives on IS function • Do you know more than the client?
MBS (BIS) / 6005 / IS Consulting Process
Segmenting the IS consulting market
• What services are provided?
– IT strategy definition (laying out an investment plan for IT spend) – Advise on IT cost reduction – Feasibility study or business case for IT spend – Develop requirements for new system – Package selection and implementation – Software development (Design, Build, Run, …) – Outsourcing operations (ASP, Helpdesk, IT support, …) – … • What markets are operated in?
– Public – Commercial – SME MBS (BIS) / 6005 / IS Consulting Process
Propose, or not to propose?
• “Changing” your spots just to snag a project • Fit of project with your capabilities • Trade off between need to grow and comfort zone • Challenge the sales team?
• Respond with a polite “no-bid” letter MBS (BIS) / 6005 / IS Consulting Process
Vision exercise
• Background, size, structure, locations • Unique selling point (if one exists) • Industry sectors/practice areas • Offers/services within these areas MBS (BIS) / 6005 / IS Consulting Process
What do consultants do?
• Consulting project examples – ERP projects: big-bang or phased approach?
– Vital role of consultants: availability, courageousness and tenacity – Telephone company uses Tel no. to identify customers!
– Catering trade: 14% stock loss, use of IT for control • Gap analysis example: colour coded “fit” of ERP to actual processes • PCB case studies presented – Skills a key issue in implementation debate (Project Mgt, IT support, PU’s, …) – Structured process overview diagram a good communication tool – Top down approach, talk to managers first: protocol and common courtesy – Including regional users in requirements specification MBS (BIS) / 6005 / IS Consulting Process
Gap analysis
• Homework: how to reconcile Requirements Specification (wish list) with ERP generic processes?
• ERP Finance modules for UCC – Scope – System requirements – Responding to an ITT / RFP • Requirements definition report – Functional requirements by dept, process, module, … MBS (BIS) / 6005 / IS Consulting Process
Gap analysis: expectation mgt
• Describe existing processes – Document how things are currently done – Review inputs and outputs of current process (screens, forms, reports) – Outline problems with current way of doing things (speed, risk of error, …) – What improvements are expected from system (single point of data entry, faster reports, less manual work, …) • How to design and communicate the proposed solution – Review requirements documentation: answer with – Walk-through solution – Get sign-off from users MBS (BIS) / 6005 / IS Consulting Process
Managing the GAP: workshop with client managers
– Off-site, phones off, informal, actual consulting team members present, start in “working together” mode – Company history and current challenges (get people saying yes) – Overview of ERP (education, building awareness, testing the water for resistance, …) – Requirements for ERP (generic and company specific) – Focus on benefits – Understanding the cost of the Gaps (alternative functionality, workaround, modification) – Addressing the functionality gap (get commitment for resources to work on B’s and C’s) MBS (BIS) / 6005 / IS Consulting Process
• • • • • •
Last week
Role of consultants (cf. Wang & Chen paper) – – – – – Conflict resolution Freeman 5 concepts of IT advisory role: – – Relationship Role – – Personal commitment: invest the time in getting to know the client Winning trust Significant “knowledge asymmetry” Not doing, but advising : how to disentangle yourself from an operational role Visualise success You advise, they decide • Disentangle yourself from operational role – • Give the criteria by which you would make the decision, rather than the decision Be results oriented Managing the GAP: workshop with client managers – – – – Off-site, phones off, informal, actual consulting team members present, start in “working together” mode Company history and current challenges (get people saying yes) Overview of ERP (education, building awareness, testing the water for resistance, …) Requirements for ERP (generic and company specific) – – Focus on benefits Understanding the cost of the Gaps (alternative functionality, workaround, modification) – Addressing the functionality gap (get commitment for resources to work on B’s and C’s) Phasing discussion: big bang vs phased – – – – Business constraints or seasonality in business cycles (eg. Hershey) Scale (# users, # countries, …) Scope (# modules, # interfaces, level of customisation, …) Timescale and cost (NB. PPARS still costing €21m. a year) – Different requirements between sites, resistance to ERP (get quick wins first) Format of tenders – Functional requirements might be by dept, process, module, … Analysis of data volumes (process flow for revenue and expenditure cycles) – – – # non-PO invoices (40%) # debtor accounts Research account maintenance MBS (BIS) / 6005 / IS Consulting Process
All Homes Provide
A roof over your head A floor under your feet A lock on the door Picture
A starter home
Electricity, water, sewer
Your dream home
Uses standard blue prints Can be built with generic skills Requires much compromise Doesn’t have unique features Is very similar to the next house Is generic in style and function Architect develops a custom plan Requires skilled craftsman Requires little compromise Is unique where you value it Is like no other house The style and function are specific MBS (BIS) / 6005 / IS Consulting Process
ERP
• Why ERP ?
– Automate and streamline sales/quote/order/invoice – Shorten order processing time – Better inventory control – Consolidates all sales information – Improve sales information on customers – Why reinvent the wheel, use best practice – Scalability – Robustness – one system, minimises repetition – Faster to implement – Clear upgrade path (linked to vendor): better expansion capability – Develop ERP skills in-house, useful for further projects – Ability to implement, large team required!
– Quantifiable outcome & timescale MBS (BIS) / 6005 / IS Consulting Process
In-house
• More control over process design • More adherence to specific requirements • More programmers required • Own processes may be better than ERP template • Have we got the resources / experience – Design – Build – Support • Cost of back fill • Long term Support issues • Time scale & cost MBS (BIS) / 6005 / IS Consulting Process
Phasing discussion: big bang vs phased
– Business constraints or seasonality in business cycles (eg. Hershey) – Scale (# users, # countries, …) – Scope (# modules, # interfaces, level of customisation, …) – Timescale and cost (NB. PPARS still costing €21m. a year) – Different requirements between sites, resistance to ERP (get quick wins first) MBS (BIS) / 6005 / IS Consulting Process
Package vs. custom debate
• What is unique to the business?
– Business model (cost, products, design, customer satisfaction, …) – Unique feature (products, production methods, IS, supply chain, …) • Leading questions – Revenue, headcount, … – Current successes, recent announcements, … • Project timescale: – a trade off between cost and tying up resources – Scope creep because of changes to the business model • Eg. EMC integration of DG rejected because of timeline impact but later regretted MBS (BIS) / 6005 / IS Consulting Process
Consulting skills
• IS consulting profession – Consultant, project manager, analyst • Consultant skills – Analytic abilities • Analysis tools (IT audit example) • Checklists, presentation matrices, … • Adding value in reporting findings in a way that prioritises actions to be taken – Technical abilities – Project management abilities – Example from Accenture MBS (BIS) / 6005 / IS Consulting Process
Roles on ERP projects
• Key roles in ERP project: Accenture example – Client, consultant and technology vendor resources – Doubling up of client and consultant resources (experience where it counts) • ERP project team example (PCB case study) – Steering committee (SC) meets once a month, only want a report on progress – Project issues should be sorted out before SC meeting – SC members represent first and foremost their functional areas – Project Manager should not be on Steering Committee?
– Clarity of project team presentation, keep like resources together – Time commitment to project (increases downwards through org chart) – Reporting lines not trivial: think where decision bottlenecks can occur (and place a consultant at that point) MBS (BIS) / 6005 / IS Consulting Process
Things to think about
• In considering change, think about how people are goaled / measured • It will always benefit you if you make your boss look good • Policy driven approach • Statement of work – Decisions – Reporting – Milestones – Planning – Policies MBS (BIS) / 6005 / IS Consulting Process
Things to think about
• Resistors easier to deal with than the George Hall’s • Pfizer: 3 IT development centres competing against each other • Communication – set your stall out, be determined – Deliver tough message first, but how you communicate it is key – Different deal shapes (eg. SAP licence issue) – Is manufacturing cultural?
• How do you judge level of interdependence between plants • Interdependence betweeen ERP and legacy (ownership issues?) MBS (BIS) / 6005 / IS Consulting Process
More tips on proposals
• Consistency in style throughout proposal • Knowledge of a sector: state it or show it • Who is the biggest benefactor of MIS?
• IT resources are important • Customers like frameworks • An architecture of functions might re-assure • Phasing, on what basis?
• Package vs. custom discussion • Security deserves attention • Maybe customer doesn’t understand new business model • Honesty looks professional and increases credibility MBS (BIS) / 6005 / IS Consulting Process
A methodology …
• Requirements are “representational”: you can’t interview everybody • Breaks a large task into manageable chunks • Shows knowledge and experience • Allows negotiation over the scope of work • Inspires confidence • Can take account of latest research / thinking • Helps calculate FTE and budget MBS (BIS) / 6005 / IS Consulting Process
Popular issues / projects
• Read current business press for ideas (SBP, FT, Economist, CEO, Fortune, …) • Outsource to Puerto Rico: like Ireland 20 years ago • Outsourcing: the knowledge economy in Ireland • IFSC now has reputatation for “futures” currency trading • “Centre of excellence” notion: holding on to higher value activities • … MBS (BIS) / 6005 / IS Consulting Process
Marketing funnel
• Consulting sales is like any other sales: creating client need is critical • Discuss sales tactics with someone you know who is a good sales person • Quantify the levels in the funnel (as you would for a sales campaign) MBS (BIS) / 6005 / IS Consulting Process
What’s an IT strategy
• Strategy is a report which matches business goals to IT directions • Lays out a plan for future investment • Contains pointers to implementation initiatives • Can refer to your experience of implementing solutions • Hopefully leads to you being retained for the implementation work MBS (BIS) / 6005 / IS Consulting Process
Croker Strategy
• • • • Customers – Sports organisations (IRFU, FAI, IOC, …) – – – – – – – – Club / county / national team supporters Corporate Ireland Business conference users Concert goers Tourists TV viewers Internet users … Stakeholders – GAA – – – Govt.
Sponsors … – – – – – – – – Suppliers – Tourist Board – – Dublin City council … Products – Sports events (seats and viewing rights) Entertainment events Business conferences Not for profit events Hotel accommodation Museum Retail Telecoms ….
MBS (BIS) / 6005 / IS Consulting Process
PPARS project
• Governance • Complexity – Job title – Responsibilities – No payscale – Bonuses – Overtime – Link roster to payroll?
• Resources • Business process change, not system issue MBS (BIS) / 6005 / IS Consulting Process
PPARS project information
• http://irishhealth.com/index.html
– PPARS is only a tool, a computer system, to aid the recording personnel data and payroll. – Problems lay deeper than the PPARS system, • e.g Business Process is poor, • no standardisation, • poor management of resources, • no reports to monitor pay expenditure and pull back on over spends. – The system is only highlighting the problems that exsist. – The system is being used as an excuse. If managers managed and were held accountable and responsible for their actions, the roll out of a new system should not be such a chore!!
MBS (BIS) / 6005 / IS Consulting Process
PPARS scope (www.PPARS.ie)
• Personnel Administration • Organisational Management • Time Management • Payroll (full Gross to Net) • Personnel Development (Qualifications only) • Training & Events • Travel Management (Expenses only) • Compensation Management (Mass Pay Increases only) • Managers Self Service • Employee Self Service (Limited Pilot) • Electronic time capture (Pilot) MBS (BIS) / 6005 / IS Consulting Process
PPARS.ie
Core Benefits
• An integrated HR system for the Irish Health System. • Comprehensive employee data and profiles. • Improved reporting / standardised reporting across and within agencies.
• Enhanced potential to improve the facilities for resource planning / costing. • Potential to improve the alignment of resources to service plans. • Enhanced information on organisational structure, reporting relationships, positions and staffing complements. MBS (BIS) / 6005 / IS Consulting Process
PPARS.ie
Core Benefits (cont.)
• Standard & streamlined processes, procedures and forms.
• Reduced administrative costs. • Compliance with the reporting requirements of the Department of Health & Children, the Health Services Employers' Agency and the Office of the Comptroller and Auditor General. • Potential for electronic information flow between Health Agencies and the Department of Health & Children. • Enhanced empowerment of Line Managers – In line with best practice in HR. • Improved employee satisfaction through, for example, improvements to career and organisation planning.
MBS (BIS) / 6005 / IS Consulting Process
Environments for IS / IT planning
Internal Organiastional Pressures
– demanding further distribution of IS/IT control organisation
High Diffusion
– degree of decentralisation of IS/IT control in the organisation “Opportunistic” “Traditional” “Complex”
CRM
“Backbone”
External Competitive Pressures
– increasing the criticality of IS/IT to the business
ERP
Low Infusion High
– degree of dependence of the business on IS/IT MBS (BIS) / 6005 / IS Consulting Process
Source : Sullivan (1985) in Ward & Griffiths (1996)
IT strategic grid
(McFarlan & McKenney)
HIGH
Strategic impact of existing systems
LOW
Factory Strategic Support Turnaround
LOW HIGH
development portfolio
“IT is a tightly managed shop which must not get beyond its station”
IT strategic grid
(McFarlan & McKenney) “IT is integral to the business”
HIGH
Strategic impact of existing systems Factory
eg. steelworks LOW
Support
“Don’t call us, we’ll call you”
eg. cement LOW
Strategic
eg. credit card
“Let’s get on with it”
Turnaround
HIGH eg. retailer
development portfolio
3 forces driving firms around grid • Fit between IT potential and operations & strategy • Strategic choices made about IT • Changes in the competitive environment
MBS (BIS) / 6005 / IS Consulting Process
Limitations of Strategic Grid
• Every company has systems in 4 quadrants • Systems may migrate around quadrants Therefore :
• •
Use grid to plot range of business applications Investment appraisal approach for each quadrant
MBS (BIS) / 6005 / IS Consulting Process
Application Portfolio
(adapted from Ward & Griffiths, Strategic Planning for Information Systems, 1996)
Key operational
Applications on which the organisation
currently depends
for success
Strategic
Applications
critical
to sustaining future business strategy Applications which are
valuable but not critical
to success
Support
Applications
which may be important
in achieving future success
High Potential
MBS (BIS) / 6005 / IS Consulting Process
Application Portfolio
Example for a manufacturing company
Key operational
• Bill of Materials • Inventory management • Customer database • Receivables / Payables • Employee database • … • Time recording • Budgetary control • General accounting • Cost accounting • Payroll • …
Support Strategic
• Sales order management • Links to suppliers • Sales Forecast & market analysis • Product Profitability analysis • … • EDI with wholesalers • Manpower planning • Decision Support (capacity plan) • Expert fault diagnosis • Document processing • …
High Potential
MBS (BIS) / 6005 / IS Consulting Process
• • •
Reading list
Handouts in class – 1 Oct 06 • ERP Implementation Case Study (PCB), Fergal Carton – • Rick Freedman (2000). The IT Consultant, Chapter One, Part One 18 th Oct 06 UCC ERP project documentation?
• Format of Tenders and Evaluation – – – • • Appendix II, current data volumes Key roles and team structure 20 th Nov 06 • SIB Industries Inc. (case study on ERP implementation project) 8 Jan 07 (soft copies also sent) • “
How to deal with difficult customer
”, Peter Urs Bender • “
Stand Up, Sit Down...Don’t Fight, Fight, Fight
”, Jacobsen (2004) • • Sales and Marketing, Ch. 6, Rick Freedman (2003). Building the IT Consulting Practice What is the IT Consulting Business, Ch. 1, Rick Freedman (2003). Building the IT Consulting Practice 26 th Feb • PPARS handouts : articles from Greg Baxter, Ciaran Buckley, Ian Campbell, John Kennedy and Auditor General report extracts Emails – – – – – Sent 18 Oct 06: • “
Effects of internal support and consultant quality on the consulting process and ERP system quality
”, Wang & Chen (2006), Decision Support Systems 46, pp 1029-1041 Sent 6 th Nov 06: • “
Blaming ERP
”, Osterland (2000), CFO, pp 89-92 Sent 14 th Nov 06 • “
Business Process Management, The Future of IT
Sent 20 th Feb 07: “, Keen (2002), Working paper for Action Technolgies Inc.
• • “
Strategy and The New Economics of Information
”, Evans & Wurster (1997), BCG “
Systems Planning in the Information Age
”, Sullivan (1985), Sloane Management Review Sent 26 th Mar 07: • “2x2 Modeling and Problem Solving”, Lowy & Hood (2004), Consulting to Management, Vol. 15, No.4, pp 40-47 Recommended reading – Rick Freedman (2000). The IT Consultant: A Commonsense Framework for Managing the Client Relationship, Jossey-Bass / Pfeiffer, San Francisco – Rick Freedman (2003). Building the IT Consulting Practice, Jossey-Bass / Pfeiffer, San Francisco MBS (BIS) / 6005 / IS Consulting Process
–
Freedman is light reading!
Building the IT Consulting Practice
• 1 • 3 skim • 4 yes • 5 yes • 6 have • 7, 8, 9, 10 no –
The IT Consultant: A Commonsense Framework for Managing the Client Relationship
• Parts 1 and 2 MBS (BIS) / 6005 / IS Consulting Process