Achieving Best Business Performance

1. Achieving Best Business Performance Mark R. Willford, Partner Accenture

2. What we’ll cover in this session • What makes a “Best Business”? • Results from Accenture research study • The Top Ten things best businesses do to improve business performance • Getting Started

3. What makes a “Best Business”? • They focus their workforce on core competencies. • They take a pragmatic approach to technology adoption and integration. • They take advantage of innovations to create market opportunities and enhance productivity. • They consolidate and standardize IT to manage their total cost of ownership.

4. According to an Accenture survey of 163 companies worldwide, only 41% of companies have achieved the majority of targeted benefits from their ERP systems Source: Accenture Institute for Strategic Change Accelerating Enterprise Systems Thought Leadership Research - July, 2002

5. Business Value of Integration Complexity of Enterprise/Business Process #1: The best businesses view enterprise systems as an ongoing program to improve performance and drive value Most Companies Are Here High Ubiquitous Processes …Anywhere, anytime, on any device… Collaboration …sharing business capabilities with partners… Process Integration …creating new processes and services to support business needs… Application Integration …leveraging functionalityin applications… Data Integration ...synchronizing systems... Data Transport … moving data… Low High

6. #2: …Accelerate value realization by planning and organizing for success 34% of companies either do not have a business case that identifies specific benefits when they implement enterprise solutions OR they do not actively measure and capture benefits. Accenture research • Define business benefits upfront • Specify business metrics • Use the metrics to measure business performance • Establish accountability for achieving business benefits and ROI from Enterprise Solutions

7. Improved decision-making is the #1 benefit sought by companies when they implement enterprise solutions. Accenture research #3: …Operate their business in real-time with access to integrated information that transcends the business • New sources of data… • Combined with cheaper data storage… • Faster processing power… • And more effective data analysis… • …will enable companies to gain actionable • insight in real time. • SAP BW/SEM enables executives to view a “dashboard” of real-time information about • the business

8. #4: …Maximize the value of their supply chain and relationships with partners • Leading companies incorporate the supply chain into their business strategy • Devote significant attention to the design of an integrated operating model • Build innovation into your supply chains • Integrate demand and supply planning across the chain • Focus on technology strategies and effective implementation • Selective outsourcing • Focus on both supply chain sales and service • Rigorously execute against your strategy

9. Customer Interaction Customer Insight Integrated View Of Customer Enterprise Integration Performance / Collaboration Workflow / Policies / Rules Reporting #5: …Differentiate their business in the eyes of the customer using customer insight and customer integration • Increase customer satisfaction • Develop customer loyalty • Grow revenues • Improve productivity • Reduce costs • Drive profitability Customer / Channel Partner Customer Interaction Platforms Premise Wireless Phone Web Mail, Fax, Email Field Web Web Customer Interaction Capabilities Customer Data Acquisition Campaign Execution Selling & Sales Admin Billing & Collections Customer Service Partner Relationship Management Field Service SAP Core Customer Interaction Capabilities Content Management Customer Data Governance Customer Context Customer Insight Market Market Research Needs Assessment Offer Packaging Offer Optimization Offer Development Campaign Management Customer Segment Management Research Analysis, Modeling & Scoring

10. #6: …Extend standardized SAP applications only to gain competitive advantage • SAP products enable easier integration with other applications • Customization approaches range from partnering with SAP on industry solutions to developing in-house applications • Continue to standardize applications for routine, non-strategic processes 70% of firms have built or were planning to build custom applications for competitive advantage. Accenture research

11. #7: …Adopt a Business Readiness program to ensure all areas of the business are working together… and are engaged Business case management Organizational Alignment Ownership and Accountability Critical Decision-making People Alignment Senior Management • Project Team • Business People • IT • Integrators Middle Management Fully Engaged Staff

12. #8: …Optimize their Enterprise Architecture to drive business value SAP NetWeaver™ People Integration • Lower TCO • Common infrastructure • Open for integration • Aligned software strategy Multi-Channel Access Composite Application Framework Life Cycle Management Collaboration Portal Information Integration KnowledgeManagement BusinessIntelligence Master Data Management Process Integration Business ProcessManagement Integration Broker Integration Broker Application Platform ABAP J2EE DB and OS Abstraction DB and OS Abstraction Image source: SAP AG … .NET WebSphere

13. #9: …Understand their core competencies and outsource everything else Outsourcing Spectrum Strategic Value TransformationalOutsourcing End-to-End Sourcing Create new and innovative ways to realize business strategies while refocusing cost Transformational Business Processes Multiple non-core processes outsourced; value driving CEO-level decision-making Collaborative Business Applications Conventional Traditional outsourcing solution, one or more non-core processes outsourced independently; price typically driving decision making TacticalValue Technology Infrastructure

14. #10: …Assess and adopt new technologies that can empower the organization • Accenture research: Percentage of organizations planning to experiment with the technology within the next two years Question: What other technologies on the horizon might provide your organization with improved business performance?

15. Getting started • Review your business case to assess whether benefits were achieved or yet to be realized • Assess the alignment of your organization’s people, processes and technology with your strategy • Do a value assessment to understand where the real value opportunities are in your company – short-term and long-term

16. Questions? • Drop me a note at mark.r.willford@accenture.com • Ask for a copy of Accenture’s research report, “The Return of Enterprise Solutions: The Director’s Cut”