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Unlocking Hidden Value in ERP: Driving Continuous Improvement with QAD Investments

This discussion led by Anton Chilton, Vice President of Global Strategic Accounts, addresses the under-leveraged capabilities of ERP systems, specifically QAD. Despite 28% of ERP functionality being utilized, businesses face challenges that hinder their return on investment. Key areas include complexity, inadequate training, and missed automation opportunities. The session will explore methods to optimize ROI and TCO, reduce costs, enhance service efficiencies, and promote innovation through continuous process improvement. Join us to learn how to evaluate and unlock the true potential of your ERP investment.

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Unlocking Hidden Value in ERP: Driving Continuous Improvement with QAD Investments

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Presentation Transcript

  1. Engaging for Value Leverage Anton Chilton Vice President Global Strategic Account 23rd March 2009

  2. ERP Functionality Available 28% Functionality Used

  3. Discussion • Under Leveraged ERP • What does that mean & what is the problem? • What are the issues and causes? • Leveraging QAD • How can I get more value out of my investment in QAD? • How can I assess the value release potential?

  4. Aberdeen Group Study

  5. Global PMI for Manufacturing

  6. Same Challenges – Greater Emphasis Increase Service Continuous Improvement effectiveness efficiency innovation Reduce Costs

  7. IT in Business - The Imperatives Solution evolution Plan Business Improvement = Accelerate ROI Investment leverage Design + Implement Service effectiveness Execution = Lower TCO Manage Cost efficiency

  8. The Compromise 20-40% Solution evolution Investment leverage How much time & resource do you spend in each area? Service effectiveness Cost efficiency 60-80%

  9. The Underleveraged ERP Effect Sub-optimal ROI 28% Execution Business Improvement Sub-optimal TCO • Supporting bolt on systems • Additional interfacing support • Managing more complex environments • Sub-optimal support for business processes • Missing automation opportunities • Missing waste elimination opportunities

  10. ERP Benefit Erosion $ Benefit Cost Time

  11. Benefit Erosion – Symptoms Deviation from standards • Bolt on solutions Manual work-arounds Revert to old methods

  12. Benefit Erosion – Causes Turnover - Reductions • Knowledge of System Insufficient Training Older Versions

  13. Problem Summary • Unprecedented economic pressure • Increased expectation in terms of • Level of service • Support for the business & performance improvement • Efficiency of resources • Budget reductions • Unleveraged ERP only exacerbates the issue

  14. Value Potential Optimize ROI Optimize TCO • Reduce support costs • Simplify apps landscape • Remove interfaces • Eliminate customizations • Automate processes • Reduce cycle times • Improve process effectiveness • Increase process efficiencies • Promote innovation

  15. Unlocking the Value

  16. ERP Benefit Maintenance $ Benefit Cost Time

  17. Making it Happen Continuous Improvement • Process Assessments Role Based Training Explore New Functionality

  18. Leveraging QAD • Evolving from traditional role • Shifting focus from implementation to life cycle • Driving continuous value generation

  19. Investing in Customer Success Pragmatic Approach Understand Develop Deliver Evolve • Business Operation • Desired Outcomes • Expectations • Priorities • Agreed outcomes • Continuous Customer Engagement • Outcome focus • Solution Strategy • Process • Information • Approach Effective Relationship

  20. Focus on Value & Outcomes 1 Rapid value assessment Map QAD potential solutions to business goals, strategies, tactics & processes 2 3 Deeper ROI Potential Analysis 4 Recommendation

  21. Value Focus Areas *This determines how the benefit is recognized in an ROI, NPV, etc. calculation – i.e. all benefits must be normalized to impact on profit – some are incremental 1 time, others are on-going

  22. Lion Nathan Breweries • $1.5bn Sales – Australian premium alcoholic beverages company • >10 Years with QAD • Value assessment and opportunity analysis • 3 people, 2-3weeks • Recommendation made to Ops Council

  23. Value Assessment Results • Adoption of MRP in some areas • Opportunities for Kanban • Training and system refresher courses • Demand Management system & integration • Place at the IT Steering Group

  24. Flexsys Rubber Chemicals • Manufacturer of chemicals for the rubber industry • Value assessment & opportunity analysis • Identified issues in company move from “Make to Stock” to “Make to Order”

  25. Value Assessment Results • Recommendations around asset management • Implemented Enterprise Asset Management • Production scheduling efficiency at 95 percent • Maintenance related down time less than 5 percent • Maintenance budget reduced 12 percent • Reactionary repairs reduced from 90 percent to 11 percent • MRO inventory turns doubled

  26. Results • Deeper level of understanding & engagement • Closer alignment • Relevant and business focused solutions • Increased benefits

  27. ERP Functionality Available Functionality Used Tomorrow Functionality Used Today

  28. Thank You

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