hosted by sap end user competency they drive the business processes that drive your business...
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SAP End User Competency
They Drive the Business Processes That Drive Your Business Performance
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Research Sources
META Group “TCO of ERP”
META Group/RWD Technologies: End
User Competency
META Group “The State of ERP Services
2004-2006”
Various other META Group research
sources
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SAP Disappointment
While the beat of the ROI drum around
ERP is incessant, most firms with ERP
investments have their heads turned in
wrong direction. • Integration
• Extended applications (CRM, SCM, et al)
• ROI-related anything
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ERP Clients Look into the Mirror
Perceived Responsibility for Problems with ERP Implementation
Number Answering
Our Own Organizati
onSoftware Vendor
Systems Integrator
Don't Know
There was no quantifiable measurement of business benefits derived from implementation
59 69% 12% 10% 8%
We had insufficient knowledge transfer 56 34% 20% 36% 11%
After go-live, we broke up the implementation team and left IT to support the installation
55 82% 9% 0% 9%
We shortchanged end user training due to time or budget limitations
51 78% 6% 10% 6%
We over-customized the software rather than adopting inherent business practices
47 74% 4% 21% 0%
Little or no planning was given to post-implementation support
40 55% 5% 33% 8%
We under funded the project and finsihed late and over budget
31 74% 13% 10% 3%
We failed to manage scope 30 73% 0% 17% 10%
We have too many versions or instances to manage and are not getting integration as planned
21 52% 19% 19% 10%
Q36.Who do you believe is most responsible for the problems you experienced with your base ERP
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Audience Poll
How many of you are in firms that have
had SAP for more than 2 years?
How many of you have had any
substantial form of repeat or continuous
SAP end user training?
How many rely on user-trains-the user?
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End User Scenario
GoLive
More Change toBusiness Process
/Attrition
Change toBusiness Process
InitialTraining
Expert
Functional
VersionUpgrade Degraded
Year 0 Year 1 Year 2
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Training Plans Presume Short-term Utilization
Training budgets
are based upon
pre-ERP cycles
Training budgets
seldom include
repeat or
continuous
training
Day 1: The End of the Beginning
1-3 Years
Planning View: the ERP wedding
15-22 Years
Client Reality: the ERP marriage
Investment scope
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-20% -10% 0%/Midpoint 10% 20%
Executive Reporting
End User Competency
Functional Integration
Application Mtc Costs
Financial Integration
Business/IT Alignment
Architecture
Other
Respondents could choose multiple pain-points. The average % of pain points cited was 38% which represents the midpoint. This graphic shows the relative response variance from midpoint.
Query of 124 firms with ERP installed
ERP Issues
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Optimal ERP End User Competency
How competent are your ERP users?
Do they take full advantage of ERP functionality?
Did they receive adequate initial training?
Do they receive continuous training?
Do they adequately drive the business processes?
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76% of Firms Polled Face User Competency Challenges
Our end users are struggling to make use of the softwareOur end users are struggling to make use of the software
11%
Our end users fully understand the software and are able to gain full benefit of its functionality.
Our end users have a sufficient understanding of the software but are not gaining full benefit of its functionality
Our end users have the ability to perform their jobs more effectively due to competency in using the application and knowledge of how it supports our processes.
13%
64%12%
How competent are your end users?
Highly Competent
Competent
Sub-StandardFailing
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Refresher and periodic re-training lead directly to competency gains
All end users receive refresher training on a regular basis
Relevant end users receive training whenever there are major system changes or upgrades
Relevant end users receive training whenever there are major system changes or upgrades
11.1 %11.1 %
Highly Competent + Competent
Sub-standard + Failing
56%37 %
6 %
No training providedNo training provided
13% 22 %
65 %
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SAP Training Resource
SAP
Dedicated third-party SAP trainers
Super users
SI’s
LMS software
Simulation software
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What practices are applied by the 24% of firms with competent end users?
83% (During implementation)
instituted a comprehensive training
plan as opposed to 22% of the firms
with sub-standard competence
81% employed trainer-trains-the-
trainer technique as opposed to 65%
of the other firms
90% combine internal staff with
Third Party or Vendor-supplied
training
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Worst practices
One-time end user training
Ongoing user trains the user
No outside training resource
No competency measurement
No simulation
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For post-implementation training support, successful firms…
ERP vendor-supplied
Third-party ERP training
Third-party systems integrator
Independent consultant
Internal staff
Highly Competent + Competent
20%10%15% 5%90%
Sub-standard + Failing
17%13% 5%24%78%
45% 35%
engage dedicated outside trainers, not independent consultants
Instructor Mix
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The ROI of End User Competency
End user “functions”
drive the business
processes that drive
business
performance
Alice in Wonderland
Order Fulfillment Process
Order Fulfillment Process
Sample Business Performance KPI’sReturn on salesReturn on assetsNet sales per employeeRatio of Assets/Liabilities
Sample Business Performance KPI’sReturn on salesReturn on assetsNet sales per employeeRatio of Assets/Liabilities
Procurement Process
Procurement Process
Production Process
Production Process
Sample Major Business Processes
Business Process Drivers
Key Performance Indicators
Profit & Loss
ERP User Competency
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META Group Advisory
Develop a continuous training program
Mix qualified outside training resource
with dedicated internal resource
Monitor end user competency with an
eye on business benefit
Bottom Line: End users drive your business processes Bottom Line: End users drive your business processes every bit as much as does the softwareevery bit as much as does the software