Enterprise Applications Center of Excellence

1
Enterprise Applications Center of Excellence

• A Maturity ModelMichael DoaneMETA Group

2
Why an ERP Center of Excellence?

• An optimization of business processes that drive
  business benefit continually
• An optimization of end user competency and
  employee fulfillment of business processes
• Continued coherence and integration of
  functionality and data through all process chains

3
Center of Excellence Functions
Business
Prepare the company for transformational change
(all the time)
To Be
Continuous business improvement
Optimization of current system usage
As Is
Maintenance and support of ERP and related
functions (ERP/CRM/SCM)
IT
Parameters Business Applications Span (ERP is
the backbone)
4
The Enterprise Applications Value Chain

• It is imperative to link end users to profit
  loss
• Without measurement, you cannot begin
• Business process improvement is the source of
  measurable business improvement
• IT also has its business processes reduction
  of IT costs applies to this value chain

Profit Loss
Key Performance Indicators

• Sample Business Performance KPIs
• Return on sales
• Return on assets
• Net sales per employee
• Ratio of Assets/Liabilities

Business Process Drivers
Sample Major Business Processes
Order Fulfillment Process
Procurement Process
Production Process
SAP User Competency
Software
5
Foundation of Organization Planning

• Two aspects of IT
• Business-specific activities the Center of
  Excellence
• Infrastructure/support Foundation Services

Center of Excellence
IT Resource/ Governance
Infrastructure/ Operations
Architecture
6
Multi-site Virtual CoE
Enterprise Program Management
Remote
Process Owners
Process Oversight
Users
Users
Users
Users
Users
Users
Users
Users
Help Desk
Continuous Education
Continuous Education
Finance
Sales
Logistics
Production
Functional Oversight
Software Configuration Support
Custom Applications
Custom Applications
Integration Management (Functional,
Cross-Application)
Integration Management (Technical)
Production Control/Change Management
7
META Group Maturity Modeling
Levels 1-5
Elements or best practices (weighted) Up to 10
per maturity level
Categories
METAmap (META Group Maturity Assessment Program)
8
Center of Excellence Maturity Model
9
The Consequences of Implementation
Concerns Pre Implementation
Mistakes Noted After Implementation
Source The State of ERP Services Multi-Client
Study, META Group 2003
10
Do you have some form of a CoE?

1. Yes
2. No

Cross-Tab Label
11
Level 1 Core ERP

• ERP is at the center of an applications portfolio
• The elements for this level are generally
  identical to those of a successfully completed
  implementation
• It is imperative to keep the project team intact
  and ready for transfer to the Center of Excellence

12
Level 2 Stable ERP

• Most new ERP installations take 3 to 4 months to
  achieve a state of stability
• In this period, project staff transitions to the
  Center of Excellence

13
Level 3 CoE Defined

• After stabilization of ERP, the Center of
  Excellence is functional
• Attention turns to measures benefits

14
Level 4 CoE Managed
15
Level 5 Evolving CoE
16
End Users
17
Business/IT Alignment
18
Infrastructure
19
Enterprise Applications
20
Results by Maturity Elements
Results by Category
21
Overall Results
METAmap (META Group Maturity Assessment Program)
22
Of those who have a CoE, which level have you
attained?

1. Core ERP
2. Stable ERP
3. Defined CoE
4. Managed CoE
5. Evolving CoE

Cross-Tab Label
23

• Keys to CoE headcount control
• Support given to Business Process Owners
• Direct software configuration by CoE
  (business-led)
• 3. Active competency management/continuing
  knowledge transfer

24
Conclusion/Recommendations

• The CoE must be led by business staff and
  business concerns (measurable)
• A CoE will be sustained if measurement and
  business benefit are at the foundation
• People/processes tend to decay through time
• Maturity is accelerated when benefits are achieved