Build an ERP Strategy and Roadmap
Align business and IT to successfully deliver on your ERP initiative
- 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 they fail 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.
Member Testimonials
After each Info-Tech experience, we ask our members to quantify the real-time savings, monetary impact, and project improvements our research helped them achieve. See our top member experiences for this blueprint and what our clients have to say.
9.1/10
Overall Impact
$71,801
Average $ Saved
19
Average Days Saved
Client
Experience
Impact
$ Saved
Days Saved
Ansa McAl
Guided Implementation
8/10
$5,480
2
The guidance and research material provided will assist in supporting the efforts. The structured approach to collecting information to discerning... Read More
Make-A-Wish Foundation of America
Workshop
8/10
$13,700
20
The dedicated time and the collaborative process will be very important for our go forward planning and success. For a virtual session, I think the... Read More
Utah Transit Authority
Guided Implementation
10/10
$13,700
10
Washington Hospital Healthcare System
Workshop
10/10
$411K
50
Best: Hearing the functional groups pain points and opportunities and how they align to corporate goals -- I believe it is a start of a cohesive pr... Read More
The Corporation of the City of Markham
Workshop
10/10
$25,000
14
Claudia facilitated and captured key details our team discussed and brought insights to keep things in perspective.
Centennial College
Guided Implementation
9/10
$25,000
23
Very knowledgeable and powerful templates that can be used
Central University of Technology
Workshop
9/10
N/A
20
MUFG Investor Services
Workshop
8/10
$32,499
20
ILUKA RESOURCES LIMITED
Guided Implementation
8/10
N/A
N/A
RCL Group Services (Pty) Ltd
Guided Implementation
8/10
$1,500
5
Best: Great experience that could be applied quickly to our unique situation Worst: Knowing that we are rushing through a process and asking you t... Read More
GENESIS CANCER CARE UK LIMITED
Guided Implementation
9/10
$5,130
2
Acquiring knowledge of ERPs particularly
Petrojam
Guided Implementation
7/10
N/A
5
St. Joseph's Health Care London
Guided Implementation
10/10
N/A
N/A
Great initial meeting to jump start our work on ERP and help us get unstuck. Looking forward to our future meaningful conversations as our planning... Read More
Diamond Offshore, LLC
Workshop
9/10
N/A
50
The best part was the collaboration and the "light bulbs" that went off between the department stakeholders involved in the workshop. The worst pa... Read More
Adams 12 Five Star Schools
Workshop
9/10
N/A
N/A
The workshop was extremely helpful in surfacing up the key elements that we need to think through as a cross functional team in order to ensure tha... Read More
Petrojam
Guided Implementation
9/10
$34,250
20
Town of Taber
Guided Implementation
10/10
N/A
20
Earlham College
Guided Implementation
8/10
$75,419
5
Expertise and guidance on how to approach an ERP strategy.
The Corporation of the City of Port Colborne
Guided Implementation
10/10
$10,000
5
Lisa was extremely knowledgeable and resourceful. Lisa provided specific advice that will help us clearly define our roadmap and inform our procure... Read More
Sirius Computer Solutions / a CDW Company
Guided Implementation
10/10
$259K
50
In this situation, the estimated dollar savings are soft dollars spread over multiple pre-sales resources in developing cohesive messaging for our ... Read More
Goodwill Industries North Florida
Guided Implementation
10/10
$30,549
20
Thank you for always proactively sharing content to meet our needs.
Aipso
Guided Implementation
8/10
$13,700
9
The templates and guidance have been very helpful in determining a path for choosing a new ERP.
Veramed Limited
Guided Implementation
10/10
$16,400
10
Iroquois Gas
Workshop
8/10
$32,499
10
Areez did a great job facilitating the ERP workshop. It was an eye-opening experience for several members of the Iroquois team.
Teledyne Technologies
Guided Implementation
10/10
$12,999
20
Wiss, Janney, Elstner Associates, Inc.
Workshop
9/10
$61,749
50
Best - gaining consensus from a cross-section of our organization re: our ERP strategy. Worst - we could have done a better job setting expectatio... Read More
Veramed Limited
Guided Implementation
10/10
$28,700
20
Missoula County
Workshop
10/10
$68,500
50
Sonoco Products Company
Workshop
9/10
N/A
20
Natco Home Group
Guided Implementation
10/10
$64,999
10
Ricardo appears to be a strong resource on ERP platforms, which will be very beneficial. There were no negatives in today's call.
Workshop: Build an ERP Strategy and Roadmap
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
Introduction to ERP
Background
Expectations and goals
Align business strategy
ERP vision and guiding principles
ERP strategy model
- ERP strategy model
ERP operating model
- ERP Operating model
Module 2: Build the ERP operation 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
Build application portfolio
- Application portfolio
Map the level 1 ERP processes including identifying stakeholders, pain points, and key success indicators
- Mega-processes with level 1 process lists
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
ERP process prioritization
- Prioritized ERP operating model
Stakeholder mapping
- Stakeholder map.
Competing priorities review
- Competing priorities list.
Initial risk register compilation
- Initial risk register.
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
Discuss future state options
- Future state options
Build initial roadmap
- Initiative roadmap
Review of final deliverable
- Draft final deliverable
Build an ERP Strategy and Roadmap
Align business and IT to successfully deliver on your ERP initiative
Table of Contents
|
Analyst Perspective |
Phase 3: Plan Your Project |
|
Executive Summary |
Step 3.1: Stakeholders, risk, and value |
|
Phase 1: Build Alignment and Scope |
Step 3.2: Project set up |
|
Step 1.1: Aligning business and IT |
Phase 4: Next Steps |
|
Step 1.2: Scope and priorities |
Step 4.1: Build your roadmap |
|
Phase 2: Define Your ERP |
Step 4.2: Wrap up and present |
|
Step 2.1: ERP business model |
Summary of Accomplishment |
|
Step 2.2: ERP processes and supporting applications |
Research Contributors |
|
Step 2.3: Process pains, opportunities, and maturity |
Related Info-Tech Research |
|
Bibliography |
Build an ERP Strategy and Roadmap
Align business 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 business leverages to accomplish its goals. An ERP that is doing its job well is invisible to the business. The challenges come when the tool is no longer invisible. It has become a source of friction in the functioning of the business
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 business 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
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, 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 during both 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, 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 business. 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
Enterprise resource planning (ERP) systems facilitate the flow of information across business units. It allows for the seamless integration of systems and creates a holistic view of the enterprise to support decision making.
In many organizations, the ERP system is considered the lifeblood of the enterprise. Problems with this key operational system will have a dramatic impact on the ability of the enterprise to survive 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.”
A business 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 business with clarity.
- This blueprint provides the business and IT the methodology to get the right level of detail for the business processes that the ERP supports so you can avoid getting lost in the details.
- Aligning and prioritizing key business 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 business strategic priorities.
- Pulling it all together into an actionable roadmap.
Enterprise Resource Planning (ERP)
What is ERP?
Enterprise resource planning (ERP) systems facilitate the flow of information across business units. 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 enterprise. Problems with this key operational system will have a dramatic impact on the ability of the enterprise to survive 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 | |||
Business
|
Data
|
People and teams
|
Technology
|
Finance, IT, Sales, 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 customer 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 the business 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 |
|
|
|
|
| Phase Outcomes | Discuss organizational goals and how to advance those using the ERP system. Establish the scope of the project and ensure that business 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 Strategy ReportComplete an assessment of processes, prioritization, and pain points, and create an initiative roadmap.
|
ERP Business ModelAlign your business and technology goals and objectives in the current environment. |
|
ERP Operating ModelIdentify and prioritize your ERP top-level processes. |
|
ERP Process PrioritizationAssess ERP processes against the axes of rigor and strategic importance. |
|
ERP Strategy RoadmapA data-driven roadmap of how to address the ERP pain points and opportunities. |
|
Executive Brief Case Study
INDUSTRY: Aerospace
SOURCE: Panorama, 2021
Aerospace organization assesses ERP future state from opportunities, needs, and pain points
Challenge
Several issues plagued the aerospace and defense organization. Many of the processes were ad hoc and did not use the system in place, often relying on Excel. The organization had a very large pain point stemming from its lack of business process standardization and oversight. The biggest gap, however, was from the under-utilization of the ERP software.
Solution
By assessing the usage of the system by employees and identifying key workarounds, the gaps quickly became apparent. After assessing the organization’s current state and generating recommendations from the gaps, it realized the steps needed to achieve its desired future state. The analysis of the pain points generated various needs and opportunities that allowed the organization to present and discuss its key findings with executive leadership to set milestones for the project.
Results
The overall assessment led the organization to the conclusion that in order to achieve its desired future state and maximize ROI from its ERP, the organization must address the internal issues prior to implementing the upgraded software.
Info-Tech offers various levels of support to best suit your needs
DIY Toolkit |
Guided Implementation |
Workshop |
Consulting |
| "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." | "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." | "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." | "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?
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 to twelve calls over the course of four to six months.
Phase 1
- Call #1: Scoping call to understand the current situation.
- Call #2: Establish business & IT alignment and project scope.
Phase 2
- Call #3: Discuss the ERP Strategy business model and mega-processes.
- Call #4: Begin the drill down on the level 1 processes.
Phase 3
- Call #5: Establish the stakeholder map and project risks.
- Call #6: Discuss project setup including stakeholder commitment and accountability.
Phase 4
- Call #7: Discuss resolution paths and build initial roadmap.
- Call #8: Summarize results and plan next steps.
Workshop Overview
Contact your account representative for more information.
workshops@infotech.com1-888-670-8889
| Day 1 | Day 2 | Day 3 | Day 4 | Day 5 | |
| Activities |
Introduction to ERP1.1 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 1.7 ERP operating model |
Build the ERP operating model2.1 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 |
Project set up3.1 ERP process prioritization 3.2 Stakeholder mapping 3.3 Competing priorities review 3.4 Initial risk register compilation 3.5 Workshop retrospective |
Roadmap and presentation review4.1 Discuss future state options 4.2 Build initial roadmap 4.3 Review of final deliverable |
Next Steps and wrap-up (offsite)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 |
|
|
|
|
|
Build an ERP Strategy and Roadmap
Phase 1
Build alignment and scope
Phase 1
|
Phase 2
|
Phase 3
|
Phase 4
|
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 enumerate 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
Create a compelling case that addresses strategic business objectives
When someone at the organization asks you WHY, you need to deliver a compelling case. The ERP project will receive pushback, doubt, and resistance; if you can’t answer the question WHY, you will be left back-peddling.
When faced with a challenge, prepare for the WHY.
- Why do we need this?
- Why are we spending all this money?
- Why are we bothering?
- Why is this important?
- Why did we do it this way?
- Why did we choose this vendor?
Most organizations can answer “What?”
Some organizations can answer “How?”
Very few organizations have an answer for “Why?”
Each stage of the project will be difficult and present its own unique challenges and failure points. Re-evaluate if you lose sight of WHY at any stage in the project.
Step 1.1
Aligning business and IT
Activities
- 1.1.1 Build a glossary
- 1.1.2 ERP Vision and guiding principles
- 1.1.3 Corporate goals and ERP benefits
This step will walk you through the following activities:
- Building a common language to ensure a clear understanding of the organization’s needs.
- Creating a definition of your vision and identifying the guiding principles to aid in decision making.
- Defining how the ERP supports achievement of the organizational goals.
This step involves the following participants:
- Primary stakeholders in each value stream supported by the ERP
- ERP Applications support team
Outcomes of this step
Business and IT have a shared understanding of how the ERP supports the organizational goals.
Are we all talking about the same thing?
Every group has their own understanding of the ERP system, and they may use the same words to describe different things. For example, is there a difference between procurement of office supplies and procurement of parts to assemble an item for sale? And if they are different, do your terms differ (e.g., procurement versus purchasing)?
| Term(s) | Definition |
| HRMS, HRIS, HCM | Human Resource Management System, Human Resource Information System, Human Capital Management. These represent four capabilities of HR: core HR, talent management, workforce management, and strategic HR. |
| Finance | Finance includes the core functionalities of GL, AR, and AP. It also covers such items as treasury, financial planning and analysis (FP&A), tax management, expenses, and asset management. |
| Supply Chain | The processes and networks required to produce and distribute a product or service. This encompasses both the organization and the suppliers. |
| Procurement | Procurement is about getting the right products from the right suppliers in a timely fashion. Related to procurement is vendor contract management. |
| Distribution | The process of getting the things we create to our customers. |
| CRM | Customer Relationship Management, the software used to maintain records of our sales and non-sales contact with our customers. |
| Sales | The process of identifying customers, providing quotes, and converting those quotes to sales orders to be invoiced. |
| Customer Service | This is the process of supporting customers with challenges and non-sales questions related to the delivery of our products/services. |
| Field Service | The group that provides maintenance services to our customers. |
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.
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.
Need Extra Help?
Speak With An Analyst
Get the help you need in this 4-phase advisory process. You'll receive 8 touchpoints with our researchers, all included in your membership.
Guided Implementation 1: Build alignment and scope
- Call 1: Scoping call to understand the current situation.
- Call 2: Establish business & 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 setup including stakeholder commitment and accountability.
Guided Implementation 4: Next steps
- Call 1: Discuss resolution paths and build initial roadmap.
- Call 2: Summarize results and plan next steps.
Contributors
- Brian Kudeba, Director, Administrative Services, Fidelis Care
- David Lawrence, Director, ERP, Allegheny Technologies Inc.
- Ken Zima, CIO, Aquarion Water Company
- Pooja Bagga, Head of ERP Strategy & Change, Transport for London
- Rob Schneider, Project Director, ERP, Strathcona County
- Tarek Raafat, Manager, Application Solutions, IDRC
- Two anonymous contributors
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