Transcript Hosted by Achieving Best Business Performance Mark R. Willford, Partner Accenture Hosted by What we’ll cover in this session  What makes a “Best Business”?  Results.

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Achieving Best Business
Performance
Mark R. Willford, Partner
Accenture
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What we’ll cover in this session
 What makes a “Best Business”?
 Results from Accenture research study
 The Top Ten things best businesses do to
improve business performance
 Getting Started
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What makes a “Best Business”?
 They focus their workforce on core competencies.
 They take a pragmatic approach to technology
adoption and integration.
 They take advantage of innovations to create
market opportunities and enhance productivity.
 They consolidate and standardize IT to manage
their total cost of ownership.
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According to an Accenture survey of 163
companies worldwide, only 41% of
companies have achieved the majority of
targeted benefits from their ERP systems
37%
37%
19%
4%
2%
No benefits
realised
Small number of
benefits realised
About half of
benefits realised
Majority of
benefits realised
Source: Accenture Institute for Strategic Change Accelerating Enterprise Systems
Thought Leadership Research - July, 2002
All benefits
realised
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#1: The best businesses view enterprise
systems as an ongoing program to improve
performance and drive value
Most Companies
Are Here
…Anywhere, anytime,
on any device…
Business Value of
Integration
Collaboration …sharing business
capabilities with partners…
Process
Integration …creating new processes and services
to support business needs…
Application
Integration …leveraging functionality
in applications…
Data
Transport
Low
Ubiquitous
Processes
Data
Integration...synchronizing
systems...
… moving data…
Complexity of Enterprise/Business Process
High
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#2: …Accelerate value realization by
planning and organizing for success
 Define business benefits upfront
 Specify business metrics
 Use the metrics to measure
business performance
 Establish accountability for
achieving business benefits and
ROI from Enterprise Solutions
34% of companies
either do not have a
business case that
identifies specific
benefits when they
implement
enterprise solutions
OR they do not
actively measure
and capture
benefits.
Accenture research
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#3: …Operate their business in real-time
with access to integrated information that
transcends the business
•
•
•
•
New sources of data…
Combined with cheaper data storage…
Faster processing power…
And more effective data analysis…
…will enable companies to gain actionable
insight in real time.
SAP BW/SEM enables executives to view a
“dashboard” of real-time information about
the business
Improved decisionmaking is the #1
benefit sought by
companies when
they implement
enterprise solutions.
Accenture research
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#4: …Maximize the value of their supply
chain and relationships with partners
 Leading companies incorporate the supply chain into
their business strategy
•
Devote significant attention to the design of an integrated
operating model
 Build innovation into your supply chains
•
•
Integrate demand and supply planning across the chain
•
•
Selective outsourcing
Focus on technology strategies and effective
implementation
Focus on both supply chain sales and service
 Rigorously execute against your strategy
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#5: …Differentiate their business in the eyes
of the customer using customer insight and
customer integration
• Increase customer
satisfaction
Customer / Channel Partner
Customer Interaction Platforms
Phone
Mail, Fax,
Email
Web
Web
Field
Customer Interaction Capabilities
Customer Campaign Selling & Billing & Customer Partner
Data
Sales
Relationship
AcquisitionExecution Admin Collections Service Management
Field
Service
Customer
Interaction
Wireless
• Develop customer
loyalty
• Grow revenues
Customer Interaction Capabilities
Customer Data
Governance
Content Management
Customer Context
Customer Insight
Market
ResearchNeeds
Market
Offer
Offer
Offer
Campaign Customer
Segment
Research Assessment Packaging OptimizationDevelopmentManagementManagement
Customer
Insight
SAP Core
Premise
• Improve
productivity
• Reduce costs
Analysis, Modeling & Scoring
Performance /
Enterprise
Collaboration
Integration
Reporting
Integrated View
Workflow /
Of Customer
Policies / Rules
• Drive profitability
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#6: …Extend standardized SAP applications
only to gain competitive advantage
 SAP products enable easier
integration with other applications
 Customization approaches range
from partnering with SAP on
industry solutions to developing inhouse applications
 Continue to standardize applications
for routine, non-strategic processes
70% of firms
have built or
were planning to
build custom
applications for
competitive
advantage.
Accenture research
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#7: …Adopt a Business Readiness program
to ensure all areas of the business are
working together… and are engaged
Business case management
Organizational Alignment
Ownership and Accountability
Critical Decision-making
People Alignment
Senior
Management
Project Team
• Business People
• IT
• Integrators
Fully
Engaged
Middle
Management
Staff
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#8: …Optimize their Enterprise
Architecture to drive business value
SAP NetWeaver™
People Integration
• Lower TCO
Multi-Channel Access
• Common
infrastructure
• Open for
integration
• Aligned software
strategy
Collaboration
Information Integration
Business
Intelligence
Knowledge
Management
Master Data Management
Process Integration
Integration
Integration
Broker
Broker
Business Process
Management
Application Platform
J2EE
Life Cycle Management
Composite Application Framework
Portal
ABAP
andOS
OS Abstraction
Abstraction
DBDBand
Image source: SAP AG
…
.NET
WebSphere
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#9: …Understand their core competencies
and outsource everything else
Outsourcing Spectrum
Strategic
Value
Transformational
Outsourcing
End-to-End Sourcing
Business
Processes
Business Applications
Transformational
Collaborative
Create new and
innovative ways to realize
business strategies while
refocusing cost
Multiple non-core processes
outsourced; value driving CEOlevel decision-making
Conventional Traditional outsourcing solution, one
Tactical
Value
Technology Infrastructure
or more non-core processes
outsourced independently; price
typically driving decision making
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#10: …Assess and adopt new technologies
that can empower the organization
Accenture research: Percentage of organizations planning to experiment with the
technology within the next two years
Question: What other technologies on the horizon might
provide your organization with improved business
performance?
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Getting started
 Review your business case to assess whether
benefits were achieved or yet to be realized
 Assess the alignment of your organization’s
people, processes and technology with your
strategy
 Do a value assessment to understand where the
real value opportunities are in your company –
short-term and long-term
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Questions?
 Drop me a note at
mark.r.willford@accen
ture.com
 Ask for a copy of
Accenture’s research
report, “The Return of
Enterprise Solutions:
The Director’s Cut”