ERM Systems Ton Klappe Jeroen Panken Deloitte Consulting

ERM Systems Ton Klappe Jeroen Panken Deloitte Consulting

Agenda • ERM – What is ERM, why ERM? – ERM functional areas and evolution • ERM Implementation – Best-of-breed or best-of-suite (one vendor or multiple vendors) – Total cost of ownership – Implementation team and approach • CRM Package configuration Siebel CRM Package configuration 3/18/2018 2

What is ERM? Enterprise Resource Management (ERM) can be defined as everything related to: Financial Management Suppliers Production Resource Materials & Warehouse & Production Distribution Management Production Products and Materials Process Services Customer Relationship Management Supply Chain Management Human Resources Physical Flow Money Flow HRM 3/18/2018 3

Why ERM? 1. Supports process integration and exchange of information with suppliers and customers: Suppliers ERM system Customer 2. ERM also provides consistent information to all departments in an organization: Finance Purchasing Warehouse Sales ERM system Production Transport Planning HRM 3/18/2018 4

Why ERM? (2) 3. Improves logistical and financial control through integrated functionality: MATERIALS MANAGEMENT PRODUCTION SALES AND DISTRIBUTION MANAGEMENT Capacity planning Sales Forecast Purchasing Supplier Master Production Planning Detail Production Planning Goods Production Receipt Control Sales Distribution Customer 4. Cost efficiency through stock reduction and process efficiency improvements 3/18/2018 5

ERM functional areas ERM originates from automated financial administrations (e. g. general ledger) and from production planning (MRP), and expanded with other financial modules, MRP II, sales control, distribution control, purchasing control, production resource management and HRM: Distribution Sales Finance P/C MRP Ov. F/A G/L Purchasing MRP II A/P A/R Production Materials Resource Mgnt HRM 3/18/2018 6

ERM functional areas (2) ERM functionality is further expanded on areas such as CRM, e-Procurement, PRM, SCM and ERM: Supply Chain Mgnt Customer Relationship Mgnt Distribution Finance Sales Partner Relationship Mgnt MRP Employee MRP II F/A G/L A/P Relationship Mgnt ment P/C Ov. E-Procurement A/R Production Materials Resource Mgnt HRM 3/18/2018 7

ERM functional areas (3) Typical ERM functionality: • Materials Management includes: – – • Production Management includes: – – • Suppliers (contract) management Purchasing Management of (raw) materials and components supplies and warehousing Goods receipts and quality management Master production planning Materials requirements planning (MRP I) Production capacity planning (MRP II) Production (quality) control Production Resource Management includes: – Production resource administration – Preventive maintenance planning & control – Projects planning & control 3/18/2018 8

ERM functional areas (4) Typical ERM functionality (continued): • Human Resource Management includes: – – – • Staff administration Staff career planning Organization management Payroll Time registration Warehouse and Distribution Management includes: – – – Sales forecasting Order processing Products stock planning & control Warehouse management & order picking Shipping 3/18/2018 9

ERM functional areas (5) Typical ERM functionality (continued): • Financial Management includes: – – – – • General ledger Accounts payables Accounts receivables Fixed assetts Treasury & cash management Project cost management Controlling Support functionality includes: – – – Business data warehouse Query and reporting tools Business process workflow tools Mobile solutions (e. g. mobile sales) other 3/18/2018 10

ERM functional areas (6) Typical ERM functionality (continued): • Customer Relationship Management includes: – Marketing support (campaign management, inbound marketing) – Sales support (opportunity management, salesforce automation, telesales, sales campaign management, product configuration, field sales support, web sales, sales force compensation management, market intelligence, quote generation, product information) – Customer service support (contact management, scripting/call center support, field service dispatch, services billing, service request handling, help desk, bulletin boards, web contact support (call me, web collaboration) • Partner Relationship Management includes: – Cooperative lead generation and “contact to contract” development – Partner sales compensation management 3/18/2018 11

ERM functional areas (7) Typical ERM functionality (continued): • Supply Chain Management (focus on direct materials and services) includes: – Supply chain planning (SCP: demand planning, replenishment planning, constraint based manufacturing planning, resource optimization, capable-to-promise, configureto-order, distribution planning, advanced planning & scheduling - APS) – Supply chain execution (SCE): contract management, catalogue management, eexchange markets management, delivery time control, financial settlement – Transportation and warehousing management • E-Procurement (focus on supporting goods and services) includes: – – Internet requisition Requisition approvals and workflow Internal and marketplace catalogue management Purchase order procurement 3/18/2018 12

ERM process oriëntation Processes and data flow between the various ERM modules: (e. g. Opportunity to Order) 3/18/2018 13

ERM process oriëntation (2) ERM processes extend beyond the borders of the company: Company Manufact. Logistics Marketing Sales Distribution Collaborative (closed or open) e-Market Sub- Raw Materials Components contractor Supplier Retailer Customer Logistics Partner One-to-one relationship One-to-many / many-to-one relationships 3/18/2018 14

• ERM – What is ERM, why ERM? – ERM functional areas and evolution • ERM Implementation – Best-of-breed or best-of-suite (one vendor or multiple vendors) – Total cost of ownership (TCO) – Implementation team and approach • CRM and package configuration Siebel CRM Package configuration 3/18/2018 15

Best-of-breed or best-of-suite 3/18/2018 16

Total cost of ownership (TCO) TCO strongly depends on the complexity (functional scope, level of modification and integrations), e. g. : High complexity: • Scope: 3 or more processes TCO per user (5 years) 50. 000 40. 000 30. 000 High complexity • High configuration (bespoke adaptions) • > 70 screens • > 7 complex integrations Average complexity: • Scope: 2 processes Avg. complexity 20. 000 10. 000 • Average configuration • 30 - 70 screens • 2 - 6 complex integrations Low complexity 100 500 1. 000 1. 500 2. 000 2. 500 Number of users 3. 000 3. 500 Low complexity: • Scope: 1 process • Low configuration • < 30 screens • 2 or less complex integrations 3/18/2018 17

Implementation team and approach A low to medium complexity ERM implementation (1 -2 processes, approximately 30 screens/reports and 1 -2 integrations) typically requires approximately 3 months and requires an implementation team of approximately 3 consultants: - 1 PM (0, 5 FTE) - 1 business and change management consultant (0, 5 FTE) - 2 process & application consultants - 1 data – and TI integration consultant (0, 5 FTE) Most effort is taken by: - Requirements specification - Business process redesign and package configuration - Data integration design and development Project phases typically include: Scoping & planning Req’s definition Design Construction Implementation 3/18/2018 18

Requirements Definition and Design 3/18/2018 19

• ERM – What is ERM, why ERM? – ERM functional areas and evolution • ERM Implementation – Best-of-breed or best-of-suite (one vendor or multiple vendors) – Total cost of ownership (TCO) – Implementation team and approach • CRM and package configuration Siebel CRM Package configuration 3/18/2018 20

Siebel CRM - Siebel CRM background - Siebel Call Center 8. 0 movie - Siebel Demo – Out of the Box 3/18/2018 21

Background Siebel CRM 3/18/2018 22

Package Configuration - Siebel Architecture Siebel Object Types and Relationships Siebel Tools Demo 3/18/2018 23

Siebel Architecture 3/18/2018 24

Siebel Object Types and Relationships 3/18/2018 25

Siebel Tools Demo 3/18/2018 26

Siebel Demo after configuration Current application at a large Belgium Bank: -First release: -Agenda and Activity Management -Employee -Customer -Resource Planning -Second Release: -Campaign Management -Lead and Opportunity Management -Interaction Management -Contact Preferences -Customer Dashboard 3/18/2018 27

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