Insights by V.

Subramaniam, Director - IT and CIO Otis

Elevator Company
Captured by Anagha Deshpande Ankita Jain Khyati Kabra Mandar Nimgaonkar Nishith Gandhi Vinayak Harer

Agenda
Insights provided by "V. Subramaniam, Director - IT and

CIO" Otis Elevator Company Organization - Over View ERP Journey Organization Need ERP and Package evaluation processes ERP Implementation Post ERP Key Learnings from Discussions Conclusion and remarks

Insights provided by "V. Subramaniam, Director - IT and CIO" Otis Elevator Company
Enterprise Relationship Programme

ERP Implementation not a project, but a business

initiative because it is a continuous process

ERP implementation is always a challenge in an Organization due to Change related to Processes, People and Systems. ERP is a Game Changer for Org.

People

VISION
System Process

Organization Overview
OTIS
Worlds largest company in the manufacture, installation and service of

elevators, escalators and moving walkways ERP implemented to be Integrate the processes and systems and aligning people, further strengthen controls leading to compliance, improved response time and reduced cycle timeto be a Agile Organization

Marico
Marico is a leading Indian Group in Consumer Products & Services in

the Global Beauty and Wellness space Implemented ERP in 2000 for detailed planning of its complex distribution system Earlier system in Marico INGRESS

ERP Journey
Organization Need Team Structure ERP Evaluation

ERP Implementation
Beyond ERP

Organization Need
Global Competition Reach Direct Virtual Scalability Flexibility / Dynamic Differentiate Edge Corporate Controls Data Integrity
Growth

AGILE
Leverage Opportunity

Old System has lived its life, its not badThen comes change, which is the Game changer

Team Structure
Sponsor (CEO)
Steering Team

Organization Team Lead

Partner

Business Consultant

Technical Consultants

IT

Finance

Sales and Distribution

Factory

Internal Team Selection

Parameters for selection
Min 5 years experience with company Good performer Adaptable to change Knows all company processes Credibility Firm, assertive Probing skills

Selection Process
Nominate People Review / Assessment Issue Letter Orientation program by Sponsor company vision External Partner Package evaluation methodology Assign roles and responsibilities

ERP Evaluation

Timeline 6 months By top management Initially, In House with external partnership CV evaluation and informal interview for external partner selection External partner should have
Domain expertise

ERP Knowledge Experience of technologies, processes Managerial expertise

Brand

Different evaluation and implementation partners RFP -> Presentation by 3-4 partners identified after due diligence 2 were shortlisted for price negotiation

Conference Room Discussion (CRD)

Internal walkthrough As Is Processes

Assess the current process Value stream process mapping Principle of lean management Process mapped end to end Value chain Mapping of information flow in process What, Who, When, How, Why at each process step Identifying requirements, gaps and pain areas Automation Level Strength and Weakness of process

Process

CRD
People System

Conference Room Discussion (..contd)

External walkthrough

Through supplier cell Educate supplier to align their processes to companys

People Inform Involvement Interact Perform Current System Architecture Current Scenarios Current Limitations Interface required Network Infrastructure Who manages system
People

Process

CRD
System

Deep Dive
3 Package Vendors SAP JDE MFG Pro Walkthrough for each scenario (not just a demo)

Deep Dive Operations

Daily Monthly User profiling

Information need

Outcome
Best Fit parameters decide package to be selected Fit Ratio Criticality Gap

Work around Customization Development not possible

Critical to

Future

have Must to have Nice to have

Negotiate and conduct due diligence Requirement (Scoping) document signed by top

management User profiling who, what, how, why Summary Document Recommendation

Implementation Partner Selection

Implementation Partner selection 3-6 months Siemens Systems Limited + SAP (Marico) L&T Info Due diligence Implemented JD Edwards before? Which cycle? Have people? How many people all of JD? What level? Walkthrough methodology of each partner Called customer for reference

How was management? Senior Management involved Attrition rate?

Flexibility of company costs and scope change

Implementation Partner Selection (..contd)

Prepare Matrix card
Finalize implementation company and team Negotiate price Implementation Post Implementation Proposal -> Scope of work

ERP Implementation
Project Governance Structure model

Approves deviations Interface for Project Team Security Matrix access rights Data Migration At every milestone of the project, there are reviews by Internal Control / Audit Team Internal and external audit

Implementation Steps Re-requirement freezing

CRD / Process walkthrough

Configuration and setups System walkthrough / CRP (Pilot)

Implementation Steps (contd..)

User Acceptance Training

UAT Readiness Assess if end users are ready for training People, Process, Data Test Cases Scenarios: Strategic, Operational, Critical, Ad-hoc, Month end UAT Integrated UAT Simulation 1 month Sign off

Implementation steps (contd..)

Training

Change Management Conference Room Training Refresher Training About JDE Guidelines for usage Top management training Supplier Training Training : parallel activity Awareness Training, Refresher Trainings Monitored training effectiveness Created Power users Created champions for multiple refresher trainings for users

Data Migration
Started after freezing of requirements Proceeds parallel to other implementation activities Data might be
Fully Available

Not Available
Partially Available

Steps in Migration
Identify Verify Migrate Validate Review Signoff

For all data, comprehensive controls during migration

Legacy
JD Edwards

Control Report

Match Control Report

Readiness to go Live
Preparation started with 3 months before going live Dashboard created to show status of various milestones
Requirement Infrastructure Readiness UAT Training Data Migration

Security

Interface

Change Management

Review

2 types of issues tracked through dashboard

Turn back Issue within a milestone Escape Issue after a milestone has passed

Root cause analysis for each Turn back and Escape

Go Live Issues
Go Live Issues

Post Go Live Turnaround Strategy:

People understanding issues

Information

ERP

Checks have to be made on: Daily operations Month end figures MIS needs

Configuration

Data

Success is measured on the basis of first month closing

Final Steps
New Interface for shifting to JDE from Legacy System Different team for interface Parallel activity; starts after requirement freezing Infrastructure readiness
LAN, WAN, PC upgraded and kept ready
Load Injector tool used for simulation of load

Support model needs to be in place Transition and post go live training conducted

DRP/Contingency plan Simulation testing

Post Go Live training Cutover Big Bang Approach (3-4 days)
Final Data Verification

Final testing
Final migrate Switch off old system; switch to ERP Test in production after migration before Final dive

Ensuring Quality at each step

Capturing turn backs at every mile stone(Requirements, Testing,

Training and feedback, Infra readiness, Data Migration) Applying quality management principles to do the root cause analysis and mistake proof the solution to eliminate escapes when we roll out the final product Quality is a continual process and journey not an end to destination For example:

Data migration: What data is migrated, how is the same verified, control checks and totals before and after migration Interface: When a data is being pushed from one system to other, how we verify through control checks and totals and reviews

ERP Modules Deployed

ERP 8.0 JD Edwards Finance Account Receivables Account Payable AL FA Job Costing Control Billing Sales and Distribution Inventory SoP RRO AOV India Localization VAT TDS Manufacturing still implementing

Marico
Ingress-Financial, Manufacturing, S&D Legacy, non-integrated, Limited Functionality and Features

Otis
Appx/Unix & Vb based System Legacy, non-integrated, Limited Functionality and Features

Infos
Unify/Unix Legacy, non-integrated, Limited Functionality and Features

Powerusers then turn into champions

Went live in 2002 NA Highly specific

Powerusers then turn into champions

Went live in 2009 Common Model Single Instance for India No customization, processes were fine tuned and had workarounds wherein it was quite specific. On India Localization they had a Bolton module to address tax related requirements integrated to JDE

Powerusers then turn into champions

Went live in 1997 NA No customization to the core, processes were fine tuned and had workarounds wherein it was quite specific.ERP was a like a configurator, where in one can configure based on its requirements. ERP is based on Oracle 7i from Infopower, Canada Big Bang approach

All the modules implemented at one go followed by BIW

Its a strategic decision to implement Finance, SND modules first and followed by Mfg Modules

Major Learnings
Never assume anything Plan for contingencies Always have a defined turnaround strategy Identify Risks -> Mitigation techniques -> Turnaround strategy Gather confidence of people at an early stage, do not let them panic Post Go Live: Communication is extremely important A fixed price project eliminates cost issues Be careful of
Over commitment Attrition Stress

Issues arising while data migration

Security

Coordination and cooperation is a must

Major Benefits from ERP

Increased operational efficiency
Reduced cycle time Global integration and view

ERP is a complex projectit has to be experienced