Rapid Deployment of ERP solutions using Lean & Agile Methods

AGILE MEAGILE ME

Husni Roukbi

PMP,CSM, SAFe SPC

Rapid deployment of ERP

solutions using lean & agile

methods

AGILE MEWHO IS IN THE AUDIENCE?

• How many people work for an organization that has an ERP system

• How many people have worked on an implementation project for these software applications?

• How many people have implemented a project for these applications using Agile?

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• Implementing ERP solutions in the traditional waterfall way that takes up to 18 months before a customer can see the value of it is no longer acceptable.

CLOUD AND AGILE HAS CHANGED THE BUSINESS MODEL FOR IMPLEMENTING ERP SOLUTIONS

Initiation Planning Execution Transition

& Close

Monitor & Control

Define Design Configure Test Deploy

Educate

Project Management Solution DeliveryProject

ManagementSolution Delivery

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THE GOAL — WHAT?

Faster & Cheaper Approach

Reduce Risk with incremental approach

Deployment flexibility (Hosted, Saas, On-Prem)

Avoid customization that prevents future upgrade

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Schedule savings

Cost savings

Scope savings

• Rapid deployment means a mix of:

• Faster time to value and faster to go-lives – schedule savings

• Lower total implementation, few hour and reduced travel – cost savings

• Adjusted scope to focus on what clients need most and fastest – scope savings

BENEFITS OF RAPID DEPLOYMENT APPROACH

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ERP IMPLEMENTATION VS. APPLICATION DEVELOPMENT

• Product Backlog vs. Solution Backlog

• Coding vs. Configuration

• Complexity of Business Requirements

• Diverse set of skills required to complete ERP Processes

• Need for support teams with various skill sets

• Systems Administration

• Security

• Organizational Change Mgmt.

• Quality Assurance / Testing

• Training / Deployment

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ADDRESSING THE CHALLENGES OF ERP AGILE ADOPTION

• Identify a champion for agile

• Integrate Organizational Change Management

• Training for Agile

• Training at all levels

• Ability to apply agile techniques for all aspects of the project

• Dedicate time to an accelerated schedule, faster than the standard model

• Willing to prioritize resources to support a faster time-to-value

• Make processing decisions quickly to meet project schedule

• Provide staff to configure/test/validate

• Dedicate executive sponsorship to the implementation

• Dependency on legacy data – Data Conversion

• End-to-End Solutions – Integration touch points

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AGILE MEAGILE MEKey Ingredients of the Rapid Approach

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Best Practice

• Accept a prescriptive scope model and follow vendor’s recommendations including acceptance of pre-configured rules and validations—and product mix

Value Stream Mapping

• “See the flow” of your value stream and wastes in the flow

• Amend business processes to maximize efficiencies in the system

• Draw the future state

• Prioritize activities needed to achieve the future state.

Build & Release Incrementally

• Structure project to deliver the solution incrementally

• Release on a separate cadence

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Setup Analysis Build Deploy &

Rollout

• Baseline

build based

on best

practices

• Training

• Value

Stream

Mapping

• Solution

Backlog

• Release

Plan

• Sprint Backlog

• Sprint Goal

• Acceptance

criteria

• Walkthrough

with

stakeholders

• Obtain signoff

• Deploy

configuration

• Data Load

• Knowledge

Transfer

• SIT

• UAT

• Cutover

• Go-live

support

ERP Rapid Implementation Approach

AGILE MEWHAT IS A VALUE STREAM?

A Value Stream is a fundamental thinking construct in Lean. Each Value Stream is the sequence of steps used to deliver value to the Customer.

• “See the flow” of your value stream and wastes in the flow.

• View all services from a system perspective.

• Understanding both material and information flows of your value stream (Current State)

• Draw a blueprint for LEAN transformation – the Future State Map

• Prioritize activities needed to achieve the Future State.

Lead time

R E P E A T

$Trigger

AGILE MEWHY VALUE STREAM MAPPING ?

• VSM helps to reduce workflow costs and steps.

• VSM is a useful visual tool for optimizing your ERP system because it shows a complete view of your entire process at every level.

• VSM provides an efficient and standardized way to identify waste in the production process and eliminate it.

• The only truly effective way to implement Value Stream Mapping is to assemble a team of process stakeholders, study the process, record each step on large paper/poster board to plaster on a large wall, identify data streams and systems, and identify KPI (key performance indicators) for each step, while recording process & queue times.

• Many customers discover that their existing ERP mods are not needed at all. Instead, they only masked poor processes that did not add value.

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VALUE STREAM MAPPING PROCESS

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Services

family

Create Current

State

Analyze

Build Solution

Backlog

Create Future

State

Solu

tio

n B

ackl

og

Rep

eat 3

day

s

Services with common Process Steps

consisting of all the data for your current process (resources, time, and quality for each step of the process)

Find opportunities to improve things.Identify/Document Deltas & Gaps

Update Business Models & Process Design

Update Solution Backlog Prioritization

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ERP FUNCTIONALITY TARGETED FOR VALUE STREAM MAPPING

• Financial (GL, AR, AP, Asset Mgmt., Treasury)

• Sales & Distribution (Prospects, Customer mgmt., sales order mgmt.)

• Manufacturing (BoM, Routings)

• Materials Mgmt. (Procurement, Inventory mgmt.)

• Logistics (Warehouse Mgmt., Transportation Mgmt.)

• Reporting

• Business Rules (customization)

• Workflow (Decisions making & approval points, Alert/warning rules).

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Stakeholder

Product Owner

Solution team member

Product Owner

Vision

Scrum Master

Solution Backlog

Potentially shippable solution

Daily Stand-Up

Sprint

Sprint Review

Burndown Charts

Sprint Backlog

Retrospective

Sprint Planning

Solution Backlog refinement

AGILE BUILD : USE SCRUM TO BUILD SOLUTIONS

SolutionIncrement

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DEPLOY & ROLLOUT

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E p i c E p i c SIT UAT

Data Conversion

Cycle IData Conversion Cycle

II

Sprint2 Sprint3 Sprint5 Sprint6Sprint1 Sprint 4

R e l e a s e

• Data conversion cycles are executed iteratively at a different cadence.• Integration Test & UAT are executed post release completion.• Multiple Go-live are possible.

Data Conversion Cycle

III

Sprint2 Sprint3 Sprint5 Sprint6Sprint1 Sprint 4

Cutover

SIT UAT Cutover

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Questions

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