Jim Testa - Realizing Value After Go-Live

ADVISORY
Realizing Value from Oracle After Going Live

KPMG LLP
James V. Testa ERP Advisory Services 27-February-2009

2009 KPMG LLP, the U.S. member firm of KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International.
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Welcome!
Implementing Oracle is difficult and requires significant investment in technology and people. During an implementation, company management focuses on the most efficient use of resources while the implementation team focuses on deadlines and making the solution work. Benefits, however, are not realized until after go-live. Yet, during implementation, many companies give insufficient thought to their post-implementation benefit realization strategy. Today, we discuss why early post-production planning is important and present a framework that increases the likelihood of realizing value from Oracle after it is implemented.
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A Quick Survey
In your organization,
How is Oracle viewed (a system, an asset, a necessary evil)? How are change requests and enhancements handled? Is there an Oracle strategy and is it tied to the business strategy? To whom do you turn when you have a question about Oracle? Is Oracle static or evolving? When Oracle went live, did it meet all the intended business requirements on Day 1? During the implementation, was the care and feeding of Oracle post-go-live considered?
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Oracle: A Critical Business Asset

Once implemented, Oracle becomes a very important company asset, both figuratively and literally Like any important business asset, Oracle
Occasionally breaks and needs to be fixed Has standard on-going maintenance requirements Needs to be kept current with evolving business requirements Needs to enable continuous improvement Is the subject of numerous change and enhancement requests Is expected to continuously provide an (increasing) return on investment
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Realizing Benefits with Oracle Requires Thinking Beyond Go-live

Realizing benefits from Oracle is an on-going effort The hard work begins after implementation Majority of project teams view post-production support as getting through the first one or two period closes Many times important, benefit-producing requirements are deferred in order to meet the go-live date Who becomes responsible for seeing they get implemented? The world around Oracle is not static: Business requirements are continuously evolving Oracles offerings are ever expanding
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Realizing Benefits with Oracle Requires Thinking Beyond Go-live

To realize sustainable business benefits, Oracle needs:
Continuous maintenance and support Continuous improvement (including related business processes) Continuous alignment with evolving business requirements
Leading companies meet these needs through a formal Postimplementation Framework Underestimating the importance of a Post-implementation Framework leads to:
On-going extension of the project team An under-performing solution Frustrated management and users Minimal initial and incremental business benefits
To be ready to on Day 1:
Planning needs to begin early in the implementation The Framework must be established prior to going live
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The Post-implementation Framework

s er m to s Cu
us in
es s
An effective Post-implementation Framework:

se rs
Supports more than running and maintaining the Oracle solution Encompasses over 40 processes Has a strong governance model Balances the needs of the key stakeholders: Business Users, IT, Customers and Vendors May be centralized or virtual May include some outsourced functions Is focused on executing the tasks necessary to maintain the health of Oracle while driving sustained realization of business benefits
Oracle
IT
Ve
n d or s
Such a Framework is often referred to as a Center of Excellence

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Components of a Post-implementation Framework
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Value Preservation / Value Creation

es s U se rs
The Framework must support two key missions related to Oracle: (1) provide the necessary support and maintenance to preserve the organizations investment and (2) identify opportunities to increase Oracles value to the business.
Release Management
Oracle
The planning and execution of minor (point) and major releases. This also includes break-fix management and enhancement request processes.
Testing Management
The verification and validation of changes to ensure requirements are met and Oracle and the business are not negatively impacted.
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IT
Ve
n d or s

s er m to s Cu
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Environment & Configuration Management

U se rs
The maintenance and certification of system performance, configurations and environments in support of the production environment. This also includes the capacity monitoring and planning processes.
Oracle
User Readiness & Support

The preparation of business leaders and users for pending changes and the provision of 2nd- and 3rd-level support.
Program & Project Management

The formal planning and execution disciplines required to effectively accomplish the activities within the Framework.
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IT
Ve
n d or s

s er m to s Cu
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Strategic Planning
es s U se rs
The forward-looking process of continuously evaluating the solution against current, evolving and future business needs and defining the appropriate solution strategy.
Governance
The organizational structure, policies, processes, tools and decision paths for effectively executing the tasks defined in the Framework.
Oracle
IT
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Ve
n d or s

s er m to s Cu
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Continuous Improvement
es s U se rs
The ongoing monitoring and refinement of Oracle to maintain its health and stability as well as to identify streamlining and costreduction opportunities.
Risks & Controls

The ongoing evaluation of financial and operational risks as they pertain to Oracle and the monitoring, review and refinement of related controls, including application, data and user security.
Oracle
IT
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Ve
n d or s
The Post-implementation Framework How are Benefits Created?

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Keeps the enterprise focused on the prize of sustaining and increasing business value through continuous improvement and strategic planning
U se rs
Allows holistic management of all related activities and provides balance across the needs of the stakeholders Balances functional and technical needs when addressing issues and future requirements Minimizes business risk and user disruption that would result from independently-operating teams
Oracle
Improves resource efficiency and allows for a flexible, demand-driven resourcing model Concentrates lessons learned for increased efficiency and quality Ensures patches, upgrades and requested enhancements synchronize with and support business needs Supports maintenance of user moral and commitment through improved expectation management and issues escalation Reduces Total Cost of Ownership
IT
Ve
n d or s
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High-level Roadmap for a Postimplementation Framework

Typical Oracle Implementation Phases Plan Design Build Deploy Go Live
Ownership / Stewardship ERP Postimplementation Framework Define & Plan Design Provision Execute
Performance Expectations / Service Level Agreements

Define Scope & Responsibilities Establish Charter Design Processes Design Roles & Responsibilities Finalize Governance Secure Facilities Define SLAs Implement Processes Onboard & Train Resources Implement Governance Execute Processes Execute Governance Execute Performance Management Manage Budget Measure Benefits
Define Governance Define Resource Needs Define Facilities Needs Establish Budget
Initiate Performance Define Performance Management Measures & Tools
Setting the Direction
Supporting the Direction
Sustaining the Direction

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Conclusion
It takes more than just going live to realize benefits from Oracle Driving and sustaining benefits is a responsibility of both the business and IT Governance is critical Properly maintaining and evolving Oracle is an ongoing effort Planning needs to begin early in the implementation and provisioning needs to take place prior to go-live Do not let your implementation team become your long-term support team
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Q & A
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Contact
James V. Testa Managing Director Advisory Services +1 (312) 665-2511 jvtesta@kpmg.com www.us.kpmg.com
All information provided is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.
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ADVISORY

Realizing Value from Oracle After Going Live

James V. Testa ERP Advisory Services 27-February-2009

Oracle: A Critical Business Asset

Realizing Benefits with Oracle Requires Thinking Beyond Go-live

Realizing Benefits with Oracle Requires Thinking Beyond Go-live

The Post-implementation Framework

An effective Post-implementation Framework:

Such a Framework is often referred to as a Center of Excellence

The Post-implementation Framework

Value Preservation / Value Creation

The Post-implementation Framework

Environment & Configuration Management

User Readiness & Support

Program & Project Management

The Post-implementation Framework

The Post-implementation Framework

Risks & Controls

The Post-implementation Framework How are Benefits Created?

High-level Roadmap for a Postimplementation Framework

Performance Expectations / Service Level Agreements

Initiate Performance Define Performance Management Measures & Tools

Setting the Direction

Supporting the Direction

Sustaining the Direction

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