ERP

Optimization
Maximize ROI Through
Improved Performance

The post-implementation optimization plan is

the key to a successfully integrated enterprise

resource planning system.

  Optimizing the ERP Investment
ERP SOLUTION SETS
Many companies embrace an ERP (Enterprise Resource Planning) system
as a way to obtain a comprehensive picture of what is really happening ERP Implementation
across their businesses. Engineered to support any or all of a companys

Formulate functional and technical
financial and operational processes, an ERP system allows an organization requirements and evaluation criteria
to share common data and practices to produce information in a real-time for software selection
environment.
Develop business case to support
decision-making regarding software
Parson Group delivers integrated solutions across all aspects of the ERP selection and implementation
implementation and optimization process. Our skills and demonstrated
Identify, evaluate, and implement
expertise include: process improvements

 Full team delivery of solutions
Provide overall project management

 Collaborative leadership and project management of the
Develop and configure future state
implementation process functional design
 Augmentation of internal resources
Develop policies and procedures as
well as training materials
Ideally, the return from improved performance should exceed the

Develop and execute system test
investment in an ERP system. By combining our functional and ERP scripts
implementation experience, we can improve information quality, optimize
business processes, and increase organizational effectiveness. Because

Design and develop financial and
managerial reports
we realize knowledge transfer is imperative to a successful implementation,
Parson Group also helps clients build their own set of tools to maintain and
Provide transition management
support their ERP systems after the engagement ends.
Support implementation with
additional resources
 Best Practices for ERP Implementations
A large portion of ERP implementations fails to generate the ROI expected ERP Optimization
at the onset. Oftentimes, the new ERP systems drive a change in the way
Perform review of current system
companies need to measure their performance. The most successful configuration and business
implementations are characterized by the following: processes

 Participation by middle and upper management as both project
Develop system and process
recommendations
champions and active participants.

Develop business case to support
 A change management process that is defined and adhered to from the implementation of process and
beginning of the project. system recommendations

 Minimal customizations to the software. Change business processes
Identify and implement system
enhancements
not the ERP package.

Provide transitional management
 Thorough documentation that defines the system configuration and
business process functionality.
Support implementation with
additional resources
 Use of consulting resources to augment the project team.

 Continuous communication of the projects objective and what the

system will and will not achieve. PARSON GROUP LLC
CORPORATE HEADQUARTERS
333. W. WACKER DRIVE, SUITE 1620
CHICAGO, IL 60606
TEL (312) 578-1170
ATLANTABOSTONCHICAGODALLASDENVERDETROITHOUSTONLOS ANGELES
FAX (312) 578-1355
MINNEAPOLISNEW YORK/NORTHERN NEW JERSEYORANGE COUNTYSAN FRANCISCOSTAMFORD
www.parsongroup.com
 treasur y & cash management
Reprinted with permission from the Association for Financial Professionals (AFP). AFP Exchange,
September/October 2001 Copyright2001 by AFP. All Rights Reserved.
he successful imple-
T mentation of an enter-
prise resource planning
system (ERP) is not the final
stop on the quest for an inte-
grated decision support system.
The long-term success of the
project lies in the successful
execution of a quality assurance
plan, otherwise known as a
post-implementation opti-
mization plan.
To obtain the full benefits,
operational synergies, and an
optimal return on investment
(ROI) from the system, an
organization must look beyond
going live and focus on improv-
ing performance. Performance
enhancement is of particular
importance in todays tight
economy, as companies strive
to reap the benefits of the tech-
nology investments made dur-
ing the past several years.
Post-
Implementation
Optimization
Optimization is the morning
after effort to evaluate the success
of the implementation and max-
imize ROI by flattening the learn-
ing curve for the new system. A
Stephen A. Faleti, CPA value-added complement to the
Parson Group initial implementation effort,
27
optimization introduces effi-
ciency drivers into the business
process that were either unavail-
able or not considered critical
for budgetary allocation during
the initial implementation proj-
ect. Examples of optimization
efficiency drivers include:
ERP software version
upgrades with additional
enhancements that optimize
the business process in one
or more functional areas
Third-party vendor software
or hardware that automates
manual data entry and radi-
cally reduces necessary head-
count
Cost-justified proprietary
hardware and software that
eliminates pre-implementa-
tion functionality gaps and
open issues and resolves
unanticipated post go-live
functionality gaps and pro-
cessing redundancies
Renewed executive accept-
ance of new system that
results in additional spon-
sorship and approval
The Need for ERP
Optimization
An ERP system is an integrat-
ed decision support system that
supports any or all of a com-
panys financial and operational
processes. All too often, though,
this large multi-resource, which
is intended to provide a com-
prehensive view of the compa-
ny, becomes unwittingly rele-
gated to the financial reporting
software. As a result, the sys-
tem neither supports manage-
ments decision-making nor
seamlessly integrates with other
functional areas in the enter-
prise. Such an ERP system is a
prime candidate for perform-
ance optimization.
The following conditions
are symptomatic of a need for
system performance tuning:
The enterprise cannot fully
recover from the post go-live
performance drag within six
months of the initial rollout
Management continues to
wait for the promised decision
support information, while a
gold mine of data sits idle in
inaccessible ERP databases
Streamlined business pro-
cesses and anticipated pro-
ductivity improvements
remain elusive, while the
organization struggles with
informal processes and work-
arounds
Morale is decreased because
the ERP system is not meet-
ing immediate business needs
Technical issues with software
vendors are unresolved and
no resolution is in sight
The Blue Print for
Optimization
Optimization should be
planned and executed with the
same diligence and account-
ability that was afforded the
initial system implementation.
As a rule, the effort should
employ a defined methodology,
September/October 2001

which breaks the project down
into distinct phases with deliv-
erables. These deliverables can
be further divided into identi-
fiable activities and measura-
ble tasks.
The following four phases
should be incorporated into the
optimization work-plan for the
program to be effective in
achieving the desired results:
1) planning and analysis, 2)
system design and prototyping,
3) development and testing,
and 4) rollout.
Planning and
Analysis
An organization must review
its goals and objectives for ini-
tially embarking on an ERP
project to adequately assess the
potential returns from an opti-
mization effort. Additionally,
management should recap cur-
rent-state ERP functionality and
evaluate its impact on business
processing, while factoring
operations monitoring and
other costs into the equation.
An evaluation of the current-
state systems architecture is a
critical part of the planning and
analysis phase. This evaluation
should include security,
resource availability, disaster
recovery plans and integration
issues. The organization should
objectively rationalize software
customization and address con-
figuration and operational
issues (deployment and sup-
port) before constructing a
project plan.
System Design and
Prototyping
A realistic project plan lays the
foundation for the design and
AFP Exchange
treasur y & cash management
development of an optimized
future-state system. At a mini-
mum, the design must include
process flow mappings, data
acquisition and management
specifications, and end user
reporting requirements. The
initial design should be flexi-
ble and scalable. It should also
be validated against the require-
ments to identify gaps and
accommodate recommended
work-arounds.
Development and
Testing
The carefully designed system
can now be prototyped, config-
ured and tested. The prototype
test procedures and results
should be documented and pre-
served to provide an audit trail
for reference in troubleshoot-
ing unanticipated performance
glitches prior to rollout. Asso-
ciated processing tools requir-
ing customized reports should
be developed and tested along
with the system prototype. In
addition, change management
policies and procedures should
be developed and process own-
ers trained to transition end- and achieve organizational effi- and operational changes asso-
users to the optimized system. ciency. However, the overall ciated with an ERP investment
success of the ERP implemen- are certain to reap the benefits
Rollout tation will be defined by the of optimization more quickly.
enterprises ability to integrate
A performance measurement and leverage the core func- Stephen Faleti, CPA, is a
benchmark should be estab- tionality of the ERP system. The national practice engage-
lished to monitor the system optimization effort should not ment manager in Parson
for added enhancements or be viewed as an implementa- Groups Chicago office. He
improvements. The optimized tion failure, but as part of a con- specializes in providing post
system can then be rolled out, tinuous improvement process. implementation optimiza-
while providing ongoing mon- The decision to invest in an tion services that help com-
itoring, maintenance and other ERP system should reflect man- panies quickly realize the
support services to ensure agements willingness to change benefits of their technology
smooth operation. the way the enterprise operates investments. He can be
Optimization is the and approaches business reached by e-mail at
enabler for a company to reap issues. Organizations that can stephen.faleti@
the benefits of an ERP system rapidly embrace the cultural parsongroup.com.
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