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Build an ERP Strategy and Roadmap for Local Government

Align business and IT to successfully deliver on your ERP initiative

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  • Organizations often do not know where to start with an ERP project.
  • They focus on tactically selecting and implementing the technology.
  • ERP projects are routinely reported as going over budget, over schedule, and failing to realize any benefits.

Our Advice

Critical Insight

  • An ERP strategy is an ongoing communication tool for the business.
  • Accountability for ERP success is shared between IT and the business.
  • An actionable roadmap provides a clear path to benefits realization.

Impact and Result

  • Align the ERP strategy and roadmap with business priorities, securing buy-in from the business for the program.
  • Identification of gaps, needs, and opportunities in relation to business processes; ensuring the most critical areas are addressed.
  • Assess alternatives for the critical path(s) most relevant to your organization’s direction.
  • Develop a roadmap that promotes structure and accountability by categorizing and prioritizing work initiatives, and by identifying resources, timelines, and investment.

Build an ERP Strategy and Roadmap for Local Government Research & Tools

1. Build an ERP Strategy and Roadmap – A comprehensive guide to align business and IT on what the organization needs from their ERP.

A business-led, top-management-supported initiative partnered with IT has the greatest chance of success.

This blueprint provides business and IT the methodology for getting the right level of detail for the business processes that the ERP supports, thus avoiding getting lost in the details.

Build a successful ERP Strategy and roadmap by:

  • Aligning and prioritizing key business and technology drivers.
  • Clearly defining what is in and out of scope for the project.
  • Getting a clear picture of how the business process and underlying applications support the business strategic priorities.
  • Pulling it all together into an actionable roadmap.

2. ERP Strategy Report Template – This is the one deliverable from the blueprint encompassing all the activities including the stakeholder presentation.

This deliverable captures all the work done in the blueprint. From the executive presentation to the initial roadmap, this deliverable has it all.

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10.0/10


Overall Impact

$1,299,999


Average $ Saved

120


Average Days Saved

Client

Experience

Impact

$ Saved

Days Saved

Virginia Department of Health

Guided Implementation

10/10

$1.3M

120

The knowledge and understanding were awesome and I am so excited to have this at our fingertips to help ensure success here at VDH!


Workshop: Build an ERP Strategy and Roadmap for Local Government

Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

Module 1: Introduction to ERP

The Purpose

To build understanding and alignment between business and IT on what an ERP is and the goals for the project.

Key Benefits Achieved

  • Clear understanding of how the ERP supports the organizational goals.
  • What business processes the ERP will be supporting.
  • An initial understanding of the effort involved.

Activities

Outputs

1.1

Introduction to ERP

1.2

Background.

1.3

Expectations and Goals.

1.4

Align Business Strategy.

1.5

ERP Vision and Guiding Principles.

1.6

ERP Strategy Model.

  • ERP Strategy Model
1.7

ERP Operating Model.

  • ERP Operating Model

Module 2: Build the ERP Operational Model

The Purpose

Generate an understanding of the business processes, challenges, and application portfolio currently supporting the organization.

Key Benefits Achieved

  • An understanding of the application portfolio supporting the business.
  • Detailed understanding of the business operating processes and pain points.

Activities

Outputs

2.1

Build Application Portfolio.

  • Application Portfolio
2.2

Map the level 1 ERP Processes Including Identifying Stakeholders, Pain Points, and Key Success Indicators.

  • Mega-processes with level 1 process lists
2.3

Discuss Process and Technology Maturity for Each Level 1 Process.

Module 3: Project Set-Up

The Purpose

A project of this size has multiple stakeholders and may have competing priorities. This section maps those stakeholders and identifies their possible conflicting priorities.

Key Benefits Achieved

  • A prioritized list of ERP mega-processes based on process rigor and strategic importance.
  • An understanding of stakeholders and competing priorities.
  • Initial compilation of the risks the organization will face with the project to begin early mitigation.

Activities

Outputs

3.1

ERP Process Prioritization.

  • Prioritized ERP operating model
3.2

Stakeholder Mapping.

  • Stakeholder map
3.3

Competing Priorities Review.

  • Competing priorities list
3.4

Initial Risk Register Compilation.

  • Initial risk register
3.5

Workshop Retrosepective

Module 4: Roadmap and Presentation Review

The Purpose

Select a future state and build the initial roadmap to set expectations and accountabilities.

Key Benefits Achieved

  • Identification of the future state.
  • Initial roadmap with expectations on accountability and timelines.

Activities

Outputs

4.1

Discuss Future State Options.

  • Future state options
4.2

Build Initial Roadmap.

  • Initiative roadmap
4.3

Review of Final Deliverable.

  • Draft final deliverable

Build an ERP Strategy and Roadmap – Local Government

Align the departments and IT to successfully deliver on your ERP initiative


EXECUTIVE BRIEF

Analyst Perspective

A foundational ERP strategy is critical to decision making.

Enterprise resource planning (ERP) is a core tool that the organization leverages to accomplish its goals. An ERP that is doing its job well is invisible to the organization. The challenges come when the tool is no longer invisible; it has become a source of friction in the functioning of the organization.

ERP systems are expensive, their benefits are difficult to quantify, and they often suffer from poor user satisfaction. Post-implementation, technology evolves, organizational goals change, and the health of the system is not monitored. This is complicated in today's digital landscape with multiple integration points, siloed data, and competing priorities.

Too often organizations jump into selecting replacement systems without understanding the needs of the organization. Alignment between the departments and IT is just one part of the overall strategy. Identifying key pain points and opportunities, assessed in the light of organizational strategy, will provide a strong foundation to the transformation of the ERP system.

Robert Fayle

Robert Fayle
Research Director, Enterprise Applications
Info-Tech Research Group

Executive summary

Your Challenge

Organizations often do not know where to start with an ERP project. They focus on tactically selecting and implementing the technology but ignore the strategic foundation that sets the ERP system up for success. ERP projects are routinely reported as going over budget and over schedule, and they fail to realize any benefits.

Common Obstacles

ERP projects impact the entire organization – they are not limited to just financial and operating metrics. The disruption is felt both during implementation and in the production environment.

Missteps early on can cost time, financial resources, and careers. Roughly 55% of ERP projects reported being over budget, and two-thirds of organizations implementing ERP realized less than half of their anticipated benefits.

Info-Tech's Approach

Obtain organizational buy-in and secure top management support. Set clear expectations, guiding principles, and critical success factors.

Build an ERP operating model/business model that identifies process boundaries, scope, and prioritizes requirements. Assess stakeholder involvement, and change impact, risks, and opportunities.

Understand the alternatives your organization can choose for the future state of ERP. Develop an actionable roadmap and meaningful KPIs that directly align with your strategic goals.

Info-Tech Insight

Accountability for ERP success is shared between IT and the departments. There is no single owner of an ERP. A unified approach to building your strategy promotes an integrated roadmap so all stakeholders have clear direction on the future state.

Insight summary

An organization-led, top management supported initiative partnered with IT has the greatest chance
of success.

  • A properly scoped ERP project reduces churn and provides all parts of the organization with clarity.
  • This blueprint provides the departments and IT the methodology to get the right level of detail for the business processes that the ERP supports so you avoid getting lost in the details.
  • Build a successful ERP Strategy and roadmap by:
    • Aligning and prioritizing key organizational and technology drivers.
    • Clearly defining what is in and out of scope for the project.
    • Providing a clear picture of how the business process and underlying applications support the organization strategic priorities.
    • Pulling it all together into an actionable roadmap.

Enterprise resource planning (ERP) systems facilitate the flow of information across departments. It allows for the seamless integration of systems and creates a holistic view of the enterprise to support decision making.

The ERP system is often considered the lifeblood of the organization. Problems with this key operational system will have a dramatic impact on the ability of the organization to serve and grow.

A measured and strategic approach to change will help mitigate many of the risks associated with ERP projects, which will avoid the chances of these changes becoming the dreaded "career killers."

This is an image of Info-Tech's enterprise Applications Lifecycle Advisory Services Lifecycle.

Enterprise resource planning (ERP)

This is an image of the ERP cycle, which sections focus on supply chain  and Customer Relationship management.

What is ERP?

Enterprise resource planning (ERP) systems facilitate the flow of information across departments. They allow for the seamless integration of systems and create a holistic view of the enterprise to support decision making.

In many organizations, the ERP system is considered the lifeblood of the organization. Problems with this key operational system will have a dramatic impact on the ability of the organization to serve and grow.

An ERP system:

  • Automates processes, reducing the amount of manual, routine work.
  • Integrates with core modules, eliminating the fragmentation of systems.
  • Centralizes information for reporting from multiple parts of the value chain to a single point.

ERP use cases

  • Product-Centric
    • Suitable for organizations that manufacture, assemble, distribute, or manage material goods.
  • Service-Centric
    • Suitable for organizations that provide and manage field services and/or professional services.

ERP by the numbers

50 – 70%
Statistical analysis of ERP projects indicates rates of failure vary from 50% to 70%. Taking the low end of those analyst reports, one in two ERP projects is considered a failure.
Source: Saxena and McDonagh

85%
Companies that apply the principles of behavioral economics outperform their peers by 85% in sales growth and more than 25% in gross margin.
Source: Gallup

40%
Nearly 40% of companies said functionality was the key driver for the adoption of a new ERP.
Source: Gheorghiu

ERP dissatisfaction

Drivers of dissatisfaction

Departments

Data

People and teams

Technology

Misaligned objectives
Product fit
Changing priorities
Lack of metrics

Access to data
Data hygiene
Data literacy
One view of the residents

User adoption
Lack of IT support
Training (use of data and system)
Vendor relations

Systems integration
Multi-channel complexity
Capability shortfall
Lack of product support

Finance, IT, Operations, and other users of the ERP system can only optimize ERP with the full support of each other. The cooperation of the departments is crucial when trying to improve ERP technology capabilities and resident interaction.

Info-Tech Insight

While technology is the key enabler of building strong customer experiences, there are many other drivers of dissatisfaction. IT must stand shoulder-to-shoulder with departments to develop a technology framework for ERP.

Info-Tech's methodology for developing a foundational ERP strategy and roadmap

1. Build alignment and scope 2. Define your ERP 3. Plan your project 4. Next Steps

Phase Steps

  1. Aligning the departments and IT
  2. Scope and priorities
  1. ERP Business Model
  2. ERP processes and supporting applications
  3. Process pains, opportunities and maturity
  1. Stakeholders, risk and value
  2. Project set-up
  1. Build your roadmap
  2. Wrap up and present

Phase Outcomes

Discuss organizational goals and how to advance those using the ERP system. Establish the scope of the project and ensure that the departments and IT are aligned on project priorities.

Build the ERP business model then move on to the top level (mega) processes and an initial list of the sub-processes. Generate a list of applications that support the identified processes. Conclude with a complete view of the mega-processes and their sub-processes.

Map out your stakeholders to evaluate their impact on the project, build an initial risk register, and discuss group alignment. Conclude the phase by setting the initial core project team and their accountabilities to the project.

Review the different options to solve the identified pain points then build out a roadmap of how to get to that solution. Build a communication plan as part of organizational change management, which includes the stakeholder presentation

Blueprint deliverables

Each step of this blueprint is accompanied by supporting deliverables to help you accomplish your goals:

ERP Business Model

Align your departments, and technology goals and objectives in the current environment.

This is a picture of the ERP Business Model

ERP Operating Model

Identify and prioritize your ERP top-level processes.

This is a picture of the ERP Operating Model

ERP Process Prioritization

Assess ERP processes against the axes of rigor and strategic importance.

This is a picture of the ERP Process Prioritization

ERP Strategy Roadmap

A data-driven roadmap of how to address the ERP pain points and opportunities.

This is a picture of the ERP Strategy Roadmap

Key deliverable:

ERP Strategy Report

Complete an assessment of processes, prioritization, and pain points, and create an initiative roadmap.

This is an image of the Key Deliverable, the ERP Strategy Report.

Executive brief case study

City selects ERP system to improve its service to residents

INDUSTRY: Local Government
SOURCE: Panorama, 2021

Challenge

The City had approximately 1,800 business requirements across areas that included finance and accounting, public service/utilities and billing, procurement and contracts, city clerk, building and maintenance, community services, public service, human resources and payroll, planning and economic development, and schools.

Due to the complexity of city's business requirements, the selection process needed to be divided into ERP and SIS (student information system).

Solution

The ERP and SIS solutions have been selected and successfully negotiated, and the City Commission approved the purchase.

The SIS selection process has reached the point where there are two finalists competing head-to-head for the business.

Results

The expected benefits of the ERP implementation are:

  • Standardized templates for job estimating
  • Reduction in time spent to approve bids
  • Increased productivity driven by improved customer insights and workflows
  • Preconfigured reports and dashboards
  • Time savings through mobile capabilities for billing reviews and approvals
  • Historical data for future bidding and estimating
  • Access data on purchase history scorecards of performance and lead times
  • Improved project management

Info-Tech offers various levels of support to best suit your needs

DIY Toolkit

"Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful."

Guided Implementation

"Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track."

Workshop

"We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place."

Consulting

"Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project."

Diagnostics and consistent frameworks used throughout all four options

Guided Implementation

What does a typical GI on this topic look like?

Phase 1 Phase 2 Phase 3 Phase 4

Call #1: Scoping call to understand the current situation.

Call #3: Discuss the ERP Strategy business model and mega-processes.

Call #5: Establish the stakeholder map and project risks.

Call #7: Discuss resolution paths and build initial roadmap.

Call #2: Establish departments and IT alignment and project scope.

Call #4: Begin the drill down on the level 1 processes.

Call #6: Discuss project setup including stakeholder commitment and accountability.

Call #8: Summarize results and plan next steps.

A Guided Implementation (GI) is a series of calls with an Info-Tech analyst to help implement our best practices in your organization.

A typical GI is between eight and twelve calls over the course of four to six months.

Workshop Overview

Contact your account representative for more information.
workshops@infotech.com 1-888-670-8889

Day 1 Day 2 Day 3 Day 4 Day 5
Activities

Introduction to ERP

Build the ERP operating model

Project set up

Roadmap and presentation review

Next Steps and
wrap-up (offsite)

1.1 Introduction to ERP

1.2 Background

1.3 Expectations and goals

1.4 Align organizational strategy

1.5 ERP vision and guiding principles

1.6 ERP strategy model

1.7 ERP operating model

2.1 Build application portfolio

2.2 Map the level 1 ERP processes including identifying stakeholders, pain points, and key success indicators

2.3 Discuss process and technology maturity for each level 1 process

3.1 ERP process prioritization

3.2 Stakeholder mapping

3.3 Competing priorities review

3.4 Initial risk register compilation

3.5 Workshop retrospective

4.1 Discuss future state options

4.2 Build initial roadmap

4.3 Review of final deliverable

5.1 Complete in-progress deliverables from previous four days

5.2 Set up review time for workshop deliverables and to discuss next steps

Deliverables
  1. ERP strategy model
  2. ERP operating model
  1. Application portfolio
  2. Mega-processes with level 1 process lists
  1. Prioritized ERP operating model
  2. Stakeholder map
  3. Competing priorities list
  4. Initial risk register
  1. Future state options
  2. Initiative roadmap
  3. Draft final deliverable
  1. Completed ERP strategy template
  2. ERP strategy roadmap

Phase 1

Build alignment and scope

Phase 1

Phase Phase Phase

1.1 Aligning Departments and IT

1.2 Scope and Priorities

2.1 ERP Business Model

2.2 ERP Processes and Supporting Applications

2.3 Process Pains, Opportunities & Maturity

3.1 Stakeholders, Risk and Value

3.2 Project Set-Up

4.1 Build Your Roadmap

4.2 Wrap up and Present

This phase will walk you through the following activities:

  • Build a common language to ensure clear understanding of the organizational needs. Define a vision and guiding principles to aid in decision making and explain how the ERP supports achievement of the organizational goals. Define the initial scope of the ERP project. This includes the discussion of what is not in scope.

This phase involves the following participants:

  • Primary stakeholders in each value stream supported by the ERP
  • ERP applications support team

Build an ERP Strategy and Roadmap – Local Government

Build an ERP Strategy and Roadmap for Local Government preview picture

About Info-Tech

Info-Tech Research Group is the world’s fastest-growing information technology research and advisory company, proudly serving over 30,000 IT professionals.

We produce unbiased and highly relevant research to help CIOs and IT leaders make strategic, timely, and well-informed decisions. We partner closely with IT teams to provide everything they need, from actionable tools to analyst guidance, ensuring they deliver measurable results for their organizations.

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Overall Impact

$1,299,999
Average $ Saved

120
Average Days Saved

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Read what our members are saying

What Is a Blueprint?

A blueprint is designed to be a roadmap, containing a methodology and the tools and templates you need to solve your IT problems.

Each blueprint can be accompanied by a Guided Implementation that provides you access to our world-class analysts to help you get through the project.

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Guided Implementation 1: Build Alignment and Scope
  • Call 1: Scoping call to understand the current situation.
  • Call 2: Establish departments and IT alignment and project scope.

Guided Implementation 2: Define Your ERP
  • Call 1: Discuss the ERP Strategy business model and mega-processes.
  • Call 2: Begin the drill down on the level 1 processes.

Guided Implementation 3: Plan Your Project
  • Call 1: Establish the stakeholder map and project risks.
  • Call 2: Discuss project set-up, including stakeholder commitment and accountability.

Guided Implementation 4: Plan Next Steps
  • Call 1: Discuss resolution paths and build initial roadmap.
  • Call 2: Summarize results and plan next steps.

Author

Robert Fayle

Contributors

  • Bagga, Pooja. Head of ERP Strategy & Change, Transport for London
  • Kudeba, Brian. Director, Administrative Services, Fidelis Care
  • Lawrence, David. Director, ERP, Allegheny Technologies Inc.
  • Raafat, Tarek, Manager, Application Solutions, IDRC
  • Schneider, Rob. Project Director, ERP, Strathcona County
  • Zima, Ken. CIO, Aquarion Water Company
  • Two anonymous contributors

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