When looking for a new enterprise software system, your organization must begin your journey by making a business case for enterprise software. This involves numerous steps, including determining an expected return on investment, anticipating total costs, and fully documenting the business case for investing in a new or upgraded system. Find out how manufacturing and distribution companies can drive an effective justification process with this presentation deck. Explore five critical areas needed to justify one of the most complex and resource-intensive initiatives your company will face: - Assess your internal environment - Fully document your current state - Clearly map your future state - Get a handle on total costs of upgrade or new enterprise system - Accurately calculate ROI

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W E B I N A R S E R I E S
T e a m w i t h U l t r a t o D r i v e
B u s i n e s s P e r f o r m a n c e I m p r o v e m e n t s
5 Steps to Getting Organizational
Buy-In For Your Enterprise
Software Project

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T O D AY ’ S M O D E R AT O R
We l c o m e
KRISTEN RENDA
M A R K E T I N G
P R O G R A M M A N A G E R
T O D AY ’ S A G E N D A
 Ultra Introduction
 5 Steps to Gaining
Organizational Buy In
 Question & Answer

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ULTRA CONSULTANTS
AN OVERVIEW OF

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Over 300 Successful Projects
100% Focused on Manufacturing
and Distribution
Headquartered in Chicago with
Clients Throughout North America
Ultra’s Focus as a Valued Partner
Industrial
Equipment
20%
Other
19%
Consumer
Goods
12%
Industrial
Supplies
12%
Food &
Beverage
8%
Automotive
7%
Chemical
7%
Distribution
5%
Electronics
5%
Medical
5%
Clients by Industr y
Founded in 1994
Under $50M
35%
$50M-$200M
33%
Over $200M
32%
Clients by S ize

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Areas of Expertise
Business Process
Improvement
Technology
Selection
Solution
Implementation
Business
Transformation
BEST PRACTICES BUSINESS TRANSFORMATION LIFECYCLE

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Your Independent Guide Through
the ERP Landscape
100% Vendor Independent
40+ Vendor Relationships
20+ Vendors Selected & Managed
?

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GEORGE TRUDELL
15 years in Industry
 ERP Implementation
Management
 Corp Director of Supply Chain
 Divisional Planning Manager
 Strategic Planning
 Master Scheduler
15+ years in Consulting
 Brought BPI to Ultra
 ERP Selection &
Implementation = 100’s
Companies
 Cloud ERP
TO D AY ’ S H O S T
George Trudell has OVER 30 YEARS OF SUPPLY CHAIN AND TECHNOLOGY EXPERIENCE
helping mid-sized to fortune 500, manufacturing and distribution companies,
improve their businesses. He has assisted well over 100 clients with BPI,
Selection, Negotiations, and Implementation of ERP systems, leading ERP
projects from both perspectives (industry and consulting).

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STEP ONE:
ASSESS YOUR INTERNAL BUSINESS ENVIRONMENT

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Agenda: 5 Steps to Getting Organizational Buy-In For Your
Enterprise Software Project
1. Assess your internal business
environment
2. Fully document your current
state
3. Clearly map your future state
4. Get a handle on your total
costs
5. A Benefits Based ROI
Calculation
 How do we get buy-in?

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Step 1: Assess Your Internal Business Environment
a) Expertise to build the business justification i. ERP knowledge
ii. Impartial advice
iii. Knowledge of ERP vendors
iv. Help with improving your
business processes

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Step 1: Assess Your Internal Business Environment
a) Expertise to build the business justification
b) Time to spend justifying the business need

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Step 1: Assess Your Internal Business Environment
a) Expertise to build the business justification
b) Time to spend justifying the business need
c) Credibility with company executives

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Step 1: Assess Your Internal Business Environment
a) Expertise to build the business justification
b) Time to spend justifying the business need
c) Credibility with company executives
d) Ability to coordinate with line-of-business executives for consensus

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Step 1: Assess Your Internal Business Environment
a) Expertise to build the business justification
b) Time to spend justifying the business need
c) Credibility with company executives
d) Ability to coordinate with line-of-business executives for consensus
e) Experience with, knowledge of industry best practices

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a) Expertise to build the business justification
b) Time to spend justifying the business need
c) Credibility with company executives
d) Ability to coordinate with line-of-business executives for consensus
e) Experience with, knowledge of industry best practices
f) Successful Team Structure
Step 1: Assess Your Internal Business Environment
Steering Team
Project
Manager
Core Team
IT Team
Functional
Team
Data Team
Technical Team
Executive
Sponsor

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STEP TWO:
FULLY DOCUMENT YOUR CURRENT STATE

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Step 2: Fully document your current state
 Assess and organize
 Look at your current state
1. Set a baseline
2. Current state reviews
3. Document current state
4. Process maps
5. ID waste

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STEP THREE:
CLEARLY MAP YOUR FUTURE STATE

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Step 3: Clearly map your future state
 Review current state
 Re-design each business
process
 Future state
process maps
 Processes that can be
eliminated?
 External processes?
 Value adds?
 Communicate to your company
Future State Flow Forecast and PO Creation
Input/OutputForecastingPlanning/PurchasingMerchandising?
Monthly/ Weekly
SalesHistory
Review Sales
History
Alter Sales History
(Bulk or Out of
Stock or Amazon)
Generate Forecast
Adjust for
Circulation and
Promotions
ERPSales
HistoryUpdates
Forecast
Generated
Forecasted?
Yes
Review Sales
Historyvs. Safety
Stock Levels and
Make Adjustments
No
Adjusted Safe
Stock Levels or
Min/ Max
Run PlanningNet
Requirements
DRPPlan
Review Inventory
Plan (and Change
Parameters)
Review POsby
Supplier by
whatever.
Create / release
POs
POinSystem
Advise Supplier of
PO
NewItemsSetup in
ERP
Setup Min/ Max, SS
or Initial Forecast
Workflow
NewItem in
ERP
Review and
Approve (Team
Event)
NewItems
CopyHistoryfrom
Compor Similar
Forecast
Approved
Auto Email to
Supplier

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STEP FOUR:
WHAT ARE THE COSTS?

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Step 4: What are the costs?
 What are our expected ERP costs?
 ERP implementation
• Type of industry
• Number of users
• Features needed
• Customization required

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Step 4: What are the costs?
 What are our expected ERP costs?
 ERP implementation • Transaction volume
• Scope
• Complexity
• Third-party integrations
• Data mapping, conversion
• Vendor role

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Step 4: What are the costs?
 What are our expected ERP costs?
 ERP implementation • Costs of ownership:
• Acquisition
• Costs of expanding the solution
• Training
• ERP Data conversion
• Infrastructure/Hardware
• Third-party solutions
• Implementation
• Customizations
• HR costs
• Recurring costs: licenses,
subscriptions, maintenance,
support

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Step 4: What are the costs?
 What are our expected ERP costs?
 ERP implementation • Costs of ownership:
• Deployment: On-premise, SaaS,
virtual private cloud, true cloud?

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Step 4: What are the costs?
 What are our expected ERP costs?
 ERP implementation • Costs of ownership:
• Deployment: On-premise, SaaS,
virtual private cloud, true cloud?
 On Premise
 Software as a Service (SaaS)
 Virtual Private Cloud
 True Cloud
Traditional installation:
Delivery on-site.
Upgrade is primary business’ responsibility.
Payment is 100% paid for upon contract or lease.

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Step 4: What are the costs?
 What are our expected ERP costs?
 ERP implementation • Costs of ownership:
• Deployment: On-premise, SaaS,
virtual private cloud, true cloud?
 On Premise
 Software as a Service (SaaS)
 Virtual Private Cloud
 True Cloud
A periodic (monthly, quarterly) payment method
for the right to use application licenses.

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Step 4: What are the costs?
 What are our expected ERP costs?
 ERP implementation • Costs of ownership:
• Deployment: On-premise, SaaS,
virtual private cloud, true cloud?
 On Premise
 Software as a Service (SaaS)
 Virtual Private Cloud
 True Cloud
Delivery off-site (AWS, Rackspace, or OneNeck).
Upgrade is primary business’ responsibility or
contracted with hosting provider.
Payment is 100% paid for upon contract or lease.

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Step 4: What are the costs?
 What are our expected ERP costs?
 ERP implementation • Costs of ownership:
• Deployment: On-premise, SaaS,
virtual private cloud, true cloud?
 On Premise
 Software as a Service (SaaS)
 Virtual Private Cloud
 True Cloud
Delivery off-site (hardware and software)
Upgrade performed by the ERP vendor
Payment is subscription, typically monthly

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Step 4: What are the costs?
1. Reduces risk
2. Increases
productivity potential
3. Saves money
• Subscriptions
over license
• Hardware
• IT costs
• Faster time to
solution
Not Cloud
Almost
Cloud
True Cloud
Attributes
On
Premise/Co-
Located
Virtual
Private
Cloud
Vendors
Virtual
Private Cloud
Cloud 1.0 Cloud 2.0 Cloud 3.0
On-Site √
Delivery Model = Off-Site √ √ √ √ √
BYOL √ √ √
Payment Method = Subscription √ √ √
Hosted by non-ERP Provider √
Hosted by ERP Vendor √ √ √ √
Upgrades by Primary Business √ √
Upgrade Method = by ERP
Vendor √ √ √ √
Single Tenant √ √
Upgrade Method = Mandatory √ √ √
Multiple Tenant √ √
Multiple data centers sync
databases worldwide √

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Step 4: What are the costs?
 Cost estimation: for Base ERP excludes CRM, Advanced
Planning, Advanced WMS, MES, etc.
 On Premise Named Users
 First Year = Number of End Users x $2,500 to $6,000 (depends on tier)
x 2 (Implementation) + Hardware
 On going = Support is 20% of software costs.
 Cloud Named Users
 First Year = Number of End Users x $100 to $300 (depends on tier) x 12
x 2 (Implementation) No Hardware.
 On Going = Number of End Users x $100 to $300 (depends on tier) x 12

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STEP FIVE:
BENEFITS BASED ROI CALCULATION

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Step 5: A benefits based ROI calculation
 Proper business case 1. Defined and Accountable
2. Budgeted
3. Aligned to objectives
Business process mapping:
• Gap Analysis
• Business Case
• KPI’s / Metrics
• Vendor Accountability

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Step 5: A benefits based ROI calculation
 Proper business case
 Savings from real-time
information Real “hard” savings:
• Inventory Reduction
• AR Days Outstanding Reduction
• Reduction of head count or keeping
same head count during forecasted
periods of growth

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Step 5: A benefits based ROI calculation
 Proper business case
 Savings from real-time
information
 Soft savings Examples:
• Customer Satisfaction
• Vendor Scorecards
• Better Access to Information
• Ease of Use = Less time training
new employees and increased
employee retention

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Additional Considerations
 Reporting
 Business Intelligence
 Growth
 Functionality
 Multi-plant
 User adoption

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SUMMARY

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Summary
1. Assess your internal business environment
a) Expertise to build the business justification
b) Time to spend justifying the business need
c) Credibility with company executives
d) Ability to coordinate with line-of-business executives for consensus
e) Experience with, knowledge of industry best practices

39. u l t r a c o n s u l t a n t s . c o m
Summary
1. Assess your internal business environment
2. Fully document your current state

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Summary
1. Assess your internal business environment
2. Fully document your current state
3. Clearly map your future state
Enterprise
Department
Process
Sub-processes
Process
Sub-processes
Department
Process
Sub-processes
Process
Sub-processes
• Inventory reduction
• Cycle time reduction
• Reduced material costs
and waste
• Reduced cost of labor
• Improved sales, new
revenue, enhanced CRM

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Summary
1. Assess your internal business environment
2. Fully document your current state
3. Clearly map your future state
4. Get a handle on your total costs • Acquisition
• Cost of expansion
• Training
• Implementation
• Customization
• Deployment options

42. u l t r a c o n s u l t a n t s . c o m
Summary
1. Assess your internal business environment
2. Fully document your current state
3. Clearly map your future state
4. Get a handle on your total costs
5. Accurately determine the benefits and calculate your ROI

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ADDITIONAL RESOURCES

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Additional Resources – Ultra Education
UPCOMING EVENTS ultraconsultants.com//events/
Process Manufacturing Webinar Series
 November 13-15th Daily at 1pm CDT
Why ERP? The Technology Behind Today’s
Enterprise Systems – Cre8tive Technology
 November 14th at 1pm CDT
EXPERT INSIGHTS ultraconsultants.com/erp-education/

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Ultra White Paper: Planning for ERP
ultraconsultants.com/erp-education/white-papers/

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QUESTIONS?

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Thank You!
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