Leonard Munyua, CIO at Simba Corporation spoke at the CIO Africa Event 2013

1. Leonard Munyua
CIO – Simba Corporation
Legacy modernisation and adequate ERP Implementation

2. Agenda
• Simba Corp
• Legacy Modernisation
• ERP Implementation
– The Simba Story

3. Who we are
• Simba Corporation, is a major player in Kenya’s motor industry, has for over four
decades been known for sales, spares and service of Mitsubishi and Fuso brands
under Simba Colt Motors.
• It also represents the BMW brand in East Africa under the Bavaria Auto Ltd. and
the Mahindra brand under the Xylon Motors Ltd.
• The company also offers leasing solutions, vehicle rental solutions (under Simba
Vehicle Rental Ltd., the sole Avis Rent-a-Car franchise holder in E.A) and innovative
fleet management solutions (under Africa Fleet Management Solutions Ltd.)
• The corporation has also diversified into the hospitality and real estate sectors
inter alia.
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4. Legacy Modernisation
• Why?
• Fact:
– Most organizations with mainframe-based systems
spend about 75 percent of their development
resources simply to maintain existing applications,
which leaves only 25 percent of their development
resources for innovation. Effecting a 25-percent
reduction in maintenance costs means that
investment in innovation will be doubled.

5. Legacy Modernisation - The CIO’s Dilemma
• As Mike Gilbert describes it―The CIO's Dilemma, the
challenge is in achieving the right balance between
managing the short-term issues of cost and
complexity while at the same time investing in the
future. Which legacy systems should be replaced
and which should be extended? How do we get the
right balance between cost pressures and strategic
business needs?

6. Source: Gartner Executive Programs (January 2012)
Gartner Executive Programs' Worldwide Survey - 2012
Top 10 Business Priorities Ranking Top 10 Technology Priorities Ranking
Increasing enterprise growth 1 Analytics and business intelligence 1
Attracting and retaining new customers 2 Mobile technologies 2
Reducing enterprise costs 3 Cloud computing (SaaS, IaaS, PaaS) 3
Creating new products and services
(innovation) 4 Collaboration technologies (workflow) 4
Delivering operational results 5 Virtualization 5
Improving efficiency 6 Legacy Modernization 6
Improving profitability (margins) 7 IT Management 7
Attracting and retaining the workforce 8 CRM 8
Improving marketing and sales effectiveness 9 ERP Applications 9
Expanding into new markets and geographies 10 Security 10

7. Key choices
• The key choices in legacy modernization are:
– Application extension
– Migration
– Redevelopment
– Replacement
• Fundamentally, business has four choices when considering
application modernization:
– Ability of the application to meet current and (-) future business needs
– Ability of the application to offer a business differential
– Total cost of ownership of the application.

8. Modernisation strategy framework

9. Modernisation strategy framework
• Even though there is the option to ―Do Nothing,‖ invariably this option
only delays a project because the pressure to modernize builds over time.
Most often the choice is between:
• Application migration—run existing applications on a lower-cost platform.
• Application replacement—substitute an off-the-shelf package for existing
functionality.
• Application redevelopment—redevelop applications that offer high
business value but that cannot be extended easily to meet new business
needs.

10. Modernization Roadmap (Strategy)
• The above strategies can be applied to each application or
even to application components.
• Legacy modernization is not a one-size-fits-all strategy. It is
quite possible to employ one strategy or a combination of
strategies. There are essentially three steps in determining
the right approach for your organization and application
portfolio:
• Application portfolio analysis
• Partner selection and validation
• Implementation

11. Application Portfolio Analysis, Assessment, and
Discovery
• This initial phase is perhaps the most important, and spending
time in this early phase can save much time later on.
• It is important to understand the value of existing assets to
the business, the need for strategic investment, and the
current total cost of ownership of the system before a clear
strategy can be envisioned. Without clear direction at this
phase, a modernization strategy may founder.

12. Assessment
• A key part of the application portfolio analysis
is the process of mainframe portfolio
assessment.
• This process builds a picture of the data,
applications, and operational flow on the
mainframe that can be used to determine
modernization candidates.

13. The Discovery Process
• The discovery process is designed to assess findings and to
perform a detailed analysis of one or more mainframe
applications identified during the assessment as candidates
for extension, migration, replacement, or redevelopment.
• Many of the major systems integrators have established
practices to help you perform this analysis. In addition,
many smaller organizations have a specialist focus in this
area.
• Evaluating what’s right for your application portfolio is the
starting point for your legacy modernization road map.

14. Partner Selection and Validation
• When selecting a partner solution provider,
consider the size and resource focus of the
organization you are considering. That is not
to say that the biggest is necessarily best.
• What is crucial is proven success. Choose a
partner that has already achieved success for
an organization similar to yours.

15. Implementation
• Develop a joint plan that puts you, and not the partner,
in control.
• Create milestones and proof points that let you
evaluate early on whether you are on the right track.
• Ensure that the individuals assigned to manage the
project have the appropriate experience. Outline clear
criteria and timing for a ―go‖ or "no go‖ decision.

16. The Simba Story
• 5 businesses running different applications
• 1 goal – to consolidate all operations
• Quite typically, developed a diverse computer environment
over many years. Custom business applications ran different
platforms. The company supported 5 major applications each
with its database.
• We needed to reduce complexity in order to reduce
operational costs—the redundant costs of maintaining so
many environments.
• The diversification business strategy

17. The Simba Story
• Our Modernisation Strategy =
– application replacement & application integration
• Some of the businesses required a total
replacement due to the operational limitations
the legacy applications had.
• Some of the businesses still had some areas
where some of the legacy systems were
performing as expected.

18. ERP Implementation
• Business Solution Mapping
• Evaluated ERP solutions from two vendors for one year
• Each had it’s own demo program with the individual
business units on the offerings of the ERP
• We then did an evaluation Matrix across all the
business lines and units and scored each accordingly.
• Obtained references from the Principles for their
partners

19. Conclusion
• Organizations today understand that if they are not evolving to more modern
infrastructures they are falling behind. A legacy modernization strategy is crucial
for maximizing the value of your existing investment in applications, reducing the
total cost of ownership of those applications, and developing the agility to bring IT
investments into alignment with business imperatives.
• Legacy modernization provides many choices and can take several forms, including
application integration, application replacement, application migration, and
application redevelopment.
• Finally, selecting the right platform and the right partner solution provider are
crucial to a successful outcome.

20. What do we want the business to feel
on the business applications

21. Technology in support of Re-alignment
• CIO’s unique position within the company allows
them to understand the company values and
business drivers hence anticipate and respond to
its requirements. It is with this in mind that they
should strive to rapidly exploit innovative
technologies to make their customers and their
clients working lives easier and more efficient.

22. Questions…..Thank You.

23. Video
Video