sap ramesh kodali
TRANSCRIPT
Building Competitive Advantage through
Optimization
Zensar„s SAP/ERP Experience
Ramesh KodaliGlobal Head – SAP Practice
Agenda
Status of ERP Systems
Lessons learnt
Cost of ERP and approach to optimize
Case studies
Status of ERP Implementations
60% of the Fortune 1000 companies already have implemented ERP systems
70% of all companies that have installed an ERP system have yet to achieve any significant return on investment
75% of the implementations have failed to achieve the benefits and promises associated with successful ERP.
Additionally
Only 5 % of ERP implementations were successful in terms of finishing on time, within budget & without serious technical problems
A majority (58%) of companies did not manage to integrate their ERP solution with existing systems
23% of respondents said the integration procedure were unsuccessful
An overwhelming 71% did not attempt to incorporate their applications as integrations are “a complex, costly and a time consuming process”
Why companies fail to realize the full
potential of an ERP implementation
The following 8 are the most common reasons observed:
ERP software was installed to mirror a set of existing, often inadequate, business processes.
Organizations were ill-prepared to conform to “Best-in-Industry” practices
Management did not take the time to answer the question, “How do we want to run the business?”
Pre-implementation activities were not well understood and often not done
IT concentration may have been on technical wizardry and not focused on business excellence issues
Education and training was rushed and did not bridge the gap from software to the day-to-day requirements of the operation
Mapping of the old legacy systems to the new system was based on technology requirements, not users‟ current and future needs
Validation of data is not on time
How to optimize your ERP system
If you have implemented ERP and you are not realizing the return that you anticipated, you should consider optimizing your ERP system
When optimizing your ERP system, the focus must be aligning the application with your business processes and rules
During the ERP optimization process, provide answers to the following: Is ERP helping you
• to improve customer satisfaction?
• to contribute in increasing market share?
• to decrease your operational expenses?
• in reducing/optimizing your inventory?
• in reducing your order-to-delivery cycle time?
• to shorten your time-to-market?
• in achieving a competitive advantage?
• in giving information and metrics you need?
If your answer to any of these questions is “No”, then ERP Optimization should definitely be on your critical path.
Cost spread
Cost of ERP implementation centers around
People
Processes
Locations
Technology/Supporting Systems
Cost spread across ERP Life Cycle
Selection of right ERP package/Implementation Partner (5-10%)
Project Preparation (5%)
Requirement gathering/Blue Printing (20% - 25%)
Design (20% - 25%)
In-house guidance (10%)
Data Collection and validation (10%-15%)
Training (10%-15%)
Testing (10%-15%)
Post go-live support (10%-20%)
Zensar‟s optimized model
That’s where Zensar’s comes in with most optimized ERP- SAP
Zensar’s SAP ERP Solutions assure the customer
• Industry Vertical process expertise
• Reduced efforts during requirement gathering and design stage
• Reduces risk of successful delivery
• Path for ROI
• Stable post go-live scenario
Preconfigured Best Business processes
• 70-80% Processes ready to be deployed Reduced time of implementation
• Fixed time Post implementation Support
• Mature post implementation support
This is accomplished by way of offering SAP Industry Vertical solutions
Design Build Go-LiveSupport
Cut-over
Assess Risk
BlueprintProject
Prep
Pre-Configured Accelerators & Components
A risk mitigated approach in reducing TCO
Accelerated
preconfigured approach
Traditional & costly
approachEffort
andCosts
Time
Our preconfigured approach
Pre-Configured Accelerators & Components
Zensar’s and SAP Best Business Practices
Reduced Implementation Effort by 30% to 50% Reduced Project Duration by 30% to 50%
Engagement model – Advantages
BusinessBlueprint
Gap Closure and Testing
Classical Project
ProjectPreparation Realization
Go-LivePreparation
Project Timeline
Demo and Gap Analysis
Pre-configured ERP for you
ProjectPreparation
Deployment and Go-Live
Preconfigured Approach
SAP ERP Software (ECC 6.0)
Provided by SAP Best Practices- India Baseline
Best Practices- Industry specific
Provided By SAP
Zensar‟s
Preconfigured Industry
offering
Developed by Zensar- Pre-
configuration of scenarios-
up to 80-85%
Configuration
Done by Zensar-as per
requirements
(Only 15-20%)
Zensar‟s IVS leading to Optimized delivery
Life Sciences
Manufacturing
Med-devices
R&D
Textiles
Manufacturing
Merchandizing
Apparel
Food
Dairy
Fast foods
Beverages
Packaging
Retail
High fashion
Groceries
Engineering
Discrete
Component manufacturing
Case Study :GHCL
Best it implementation of the year 2007
PROJECT HIGHLIGHTS:
Year of Implementation:2007
Head Office: Delhi
Implementation: Vapi, Gujrat
Modules: FI, CO, MM, PP, QM, SD, EMS
Case Study – SANGAM Textile
Best IT implementations in 2008
PROJECT HIGHLIGHTS:
Year of Implementation:2007-2008
Head Office: Rajasthan ,India
Implementation:Bhilwara,Rajasthan
Modules: FI, CO, MM, PP, QM, SD
SUTLEJ : Best IT implementation in 2008
SUTLEJ runs SAP on ZENtex
PROJECT HIGHLIGHTS:
Year of Implementation:2007-2008
Head Office: Mumbai
Implementation: Jammu, Gujarat
Modules: FI, CO, MM, PP, QM, SD, EMS
The Only Indian Case – 2007 SAP ASUG Vienna
RPG-LS runs SAP on ZENlife
VARROC runs SAP on ZENmach
PROJECT HIGHLIGHTS:
Year of Implementation:2005
Head Office: Aurangabad
Implementation: Aurangabad
Modules: FI, CO, MM, PP, QM, SD, EMS
• 33 Manufacturing Plants
• Implementation time 12 Months
• Team Size – 12
• Solution – Zensar‟s Preconfigured
SAP Certified Solution
SULZER RUNS SAP on ZENmach
• 120 Locations Worlwide
• Implementation Duration 8
• Team Size – 12
• Solution – Zensar‟s Preconfigured
SAP Certified Solution - ZENMACH
PROJECT HIGHLIGHTS:
Year of Implementation:2009
Head Office: Mumbai
Implementation: New Mumbai
Modules: FI, CO, MM, PP, QM, SD, PS
World‟s leading Specialized centrifugal pumps
Customer Success – CorePharma
Companies that run SAP All-in-one Preconfigured
Solutions
Best it implementation of the year 2007Best it implementation of the year 2007
Indian Immunologicals
Jazeera Pharma - KSA
Conclusions
Key is on the selection processes
Insist on ERP vendor with pre-configured processes that suit your
industry (70% atleast)
Identify critical processes and ask the vendor for demo of these
processes
3-4 day scope study prior to contract signing to avoid cost overrun
Previous Industry experience of the vendor
A sample and demo run of the training program
Thank You