JD Edwards Post Implementation Systems Assessment (PISA) A way to ensure you get the most value from your implementation

Transcription

1 A SYSTIME Cmputer Crpratin Publicatin JD Edwards Pst Implementatin Systems Assessment (PISA) A way t ensure yu get the mst value frm yur implementatin Authr: Dale Kaplan, Vice President - NA Cnsulting Operatins

2 JD Edwards Pst Implementatin Systems Assessment (PISA) Table f Cntents Intrductin Technical System Assessment Functinal System Assessment Summary Cpyright Abut SYSTIME Cntact Details Abut the Authr

3 JD Edwards Pst Implementatin Systems Assessment (PISA) Intrductin Scenari Yu have just cmpleted yur implementatin f JD Edwards; either perfrmed by external cnsultants r internally, and althugh it is tuted as a successful implementatin, yu still feel a little uneasy abut its true success and value t yur cmpany. Prblems CIOs and IT Directrs are explring whether they have really achieved the ROI they expected. Six t twelve mnths after g-live, JD Edwards clients are really unsure if they have truly attained the mst value ut f their JD Edwards prducts. JD Edwards users are trying t understand just hw well they actually implemented their systems. Sme pertinent questins include: Did each prcess and related functinality in JD Edwards get utilized t the extent? Hw des my implementatin cmpare with ther JD Edwards implementatins? Is ur system ptimized frm a technlgy perspective, and if nt, hw can it be imprved? What is the user cmmunity feeling; d they need mre training, hw can their prcesses be imprved, has the system made their jb easier? Cmfrt Zne IT departments acrss the glbe cntinue t strive t get t the cmfrt zne (i.e. where they can truly state that their systems are wrking as anticipated and they are passing the desired benefit t their stakehlders). Hwever, the feeling f uneasiness is nt uncmmn! Slutin Hw des ne get t the level f cmfrt? Many JD Edwards users are lking twards cnsulting firms t validate the current status f their systems. The ntin f a fresh set f eyes required t uncver elements f the implemented system that were either nt fully implemented r perhaps implemented incrrectly is becming extremely ppular amngst JD Edwards users. This white paper examines hw a typical Pst Implementatin Systems Assessment (PISA) can alleviate mst f the cmmn cncerns and questins psed abve. We discuss the elements that shuld be included in a PISA t ensure that the benefits are realized and suggest ways t enable JD Edwards users t fully understand the current status f their JD Edwards enterprise slutin. A PISA cntains technical and functinal assessments. Bth are discussed in detail t assist yu in evaluating the need fr a PISA in yur rganizatin.

4 JD Edwards Pst Implementatin Systems Assessment (PISA) Technical System Assessment The technical part f the PISA is perfrmed with the gal f identifying system perfrmance weaknesses and areas fr imprvement. The fllwing elements shuld be reviewed: Netwrk Architecture Hardware/OS/DB versins catalg with service pack cnfiguratins SAR ESUs with respect t JDE release levels Installed Servers including installatin details Service Packs/Tls releases and Updates Envirnment Details CNC cnfiguratins Surface Testing t highlight any bvius errrs. A senir infrastructure specialist shuld review the current architecture and ensure it is cnfigured in the best and mst ptimized way. JD Edwards users usually (althugh nt always) have internal technical resurces. Hwever, the skill levels can vary and even with a highly skilled resurce, a fresh set f eyes can smetimes highlight elements that have been missed in the past. Recmmendatins shuld cver: System level recmmended imprvements Database level recmmended imprvements CNC cnfiguratins and prcedure recmmendatins Backup and recvery prcedure recmmendatins Security weaknesses and recmmendatins fr imprvement. An example f a system level imprvement may be t de-fragment the hard disk fr increasing perfrmance, upgrade 3 rd party sftware such as cmpilers t ensure full cmpliance with JD Edwards standards r apply additinal security t ensure cmpliance. A database level imprvement may be t upgrade middleware t the latest ptimized versin r t re-index the database t ptimize query perfrmance. These reviews and recmmendatins require experienced and seasned technical specialists t identify issues r pssible future issues.

5 JD Edwards Pst Implementatin Systems Assessment (PISA) An example f a Security Review Apprach Dcument is shwn belw: The technical assessment shuld include a review f any custm develpment wrk that has been perfrmed. The assessment shuld validate that the develpment was really needed. Many cmpanies prefer t keep the system as vanilla as pssible with a lw level f custmizatin. This is t reduce maintenance and ensure smth upgrades. An assessment shuld be perfrmed as t whether the custmizatin culd be replaced with ther system functinalities, r if revised/refined prcesses wuld eliminate the need fr custmizatin. The technical assessment shuld als review the sftware develpment methdlgy and assciated dcumentatin. Reviews f the latter can help in identifying risk areas and weaknesses, and can pinpint ptential areas t perfrm further due diligence. The review shuld fcus n whether the develpment prcedures were fllwed prperly and that suitable dcumentatin has been created. Elements that shuld be reviewed include: Sample Functinal specificatins Sample Technical specificatins Testing Dcumentatin with fcus n cmpleteness and sign ffs The nature f the technical wrk and its implicatins, if any. It is suggested that the mst current listing f pen issues be reviewed with specific attentin given t perfrmance related issues and custm develped prgrams. As an example, prly develped cde in

6 JD Edwards Pst Implementatin Systems Assessment (PISA) EnterpriseOne can be trublesme in nn-fat client envirnments such as the web. Technicians will review and dcument the Sftware Develpment Life Cycle t ensure that best practices are fllwed. Figure 1: Sftware Develpment Life Cycle Dcumentatin Diagram Surce: SYSTIME Technical Assessment Figure 1 shws a typical EnterpriseOne sftware develpment lifecycle and hw bjects flw thrugh the prcess. The technical assessment will validate that a prven Oracle/JD Edwards develpment prcess is being fllwed. The technical assessment reviews the current testing and related sign ff prcedures t ensure that they are in place and have been fllwed during the develpment prcess. If there is cmpliance with these prcedures, the risk f bad r incrrect cde mving t the prductin (live) envirnment will be minimized. An incrrect custmizatin (either unstable r nt t requirement) reduces buy-in amngst the user cmmunity and csts time and mney fr rectificatin. The technical assessment can identify many areas fr imprvement. Once cmpleted, it is suggested that a cst-benefit analysis be perfrmed t priritize and identify thse areas that make the mst ecnmic sense t implement. Often the cst f implementing sme technical recmmendatins may utweigh the benefits r nt be within the means f the cmpany. As such recmmendatins need t be cgnizant f these cnstraints.

7 JD Edwards Pst Implementatin Systems Assessment (PISA) Functinal System Assessment The functinal part f the PISA is a defined prcess that investigates the level f utilizatin f the system in all prcess areas; and identifies functinal and prcess imprvement recmmendatins. The main bjective f the functinal assessment is t prvide the JD Edwards user with an assessment f the level f functinal utilizatin and identificatin f additinal areas where increased utilizatin will result in prcess imprvements, reductin in csts and increased ROI. The secndary gal is t understand areas f the business prcess that are nt within the cre JD Edwards system. There may be valid reasns fr interfaces and 3 rd party slutins. Hwever, a cmmn bjective is t integrate all prcesses int minimum number f systems pssible, in line with the primary reasn fr purchasing an integrated system like JD Edwards. A key criteria t nte is that the functinal assessment shuld be perfrmed by JDE Expert(s), i.e. an experienced JD Edwards slutins user, (super-user r experienced cnsultant) wh has implemented the versin r suites yu are utilizing, and have experience perfrming such reviews. This individual shuld als have necessary authrity r pwer, and have senir management buy-in, t execute the review and effect change where needed. The functinal assessment shuld include a review f: Mdule and System Cnstants Organizatin Structure, Cat Cdes Chart f Accunts Structure (COA) AAI/DMAAIs Overall integrity f finance Mdule specific setups (Line Types, Order Activity rules, GL class, csting/pricing methds, prfiles setup, payment terms, fiscal year UDCs, versin setups, etc.) Menu structures, functinal security aspects, naming cnventins Type f custmizatin cnducted and its impact Business prcesses. The general areas, such as the COA, AAIs and Cnstants can be reviewed by fllwing a standard audit template with assciated defined recmmended imprvements. The prcess areas require the expertise f the JDE Expert (as defined abve). The apprach t the review can vary, hwever it is mst cmmn t cnduct it fllwing yur business prcess flws, highlighting mdule utilizatin percentages as part f that prcess rather than fcusing n a specific mdule.

8 JD Edwards Pst Implementatin Systems Assessment (PISA) Mdule Utilizatin Percentages are derived using a mdel develped by SYSTIME that takes int accunt a weighting factr based n varius elements being used and cnfigured within each mdule. E.g.: An understanding f the mdule utilizatin percentage f Sales Order Management is nt all inclusive t understand the success f the implementatin. Cmparisn t ther similar implementatins r t a benchmark is imprtant. Assume the system utilizatin percentage fr Sales Order Management is 60% fr yur cmpany. The reasn fr that percentage may be because yu d nt use transfer rders, direct ship rders r backt-back prcessing. As such, these elements may nt be required as yur cmpany may be a single plant make-t-stck manufacturer. As such, a cmparisn t ther single plant make-t-stck manufacturers may reveal that a 60% utilizatin percentage is the best ne can expect t achieve. The fllwing table prvides a summary f the Mdule Utilizatin Percentage averages that were used n a recent PISA engagement. Example f Mdule Utilizatin Percentage Averages Mdule Used Mdule Utilizatin % Implementatin Average percentage Abve/Belw r Average Cmpared t Implementatin Average Inventry Management 60% 60% Average Sales and Distributin 75% 65% Abve Average Manufacturing 45% 60% Belw Average Planning 30% 50% Belw Average Figure 2: Summary utilizatin percentage figures Surce: a recent SYSTIME PISA Percentages shwn abve are based n the specific accunt and shuld nt be used as a benchmark withut understanding the surrunding assumptins that supprted them. All utilizatin percentages shuld be supprted by a detailed review that prvides infrmatin n the shrtcmings and recmmendatins, and/r the reasns fr ver-achievement. Anther key element t understanding the utilizatin levels f the system is t understand what is missing and what it wuld take t fill in the gaps. Yu rdneed t identify what culd have been implemented in the system and the extent t which 3rd party systems r wrk-arunds are being used t cmpensate. The table belw shws a further drill-dwn int the Inventry Management mdule (Utilizatin f 60% shwn in Figure 2 abve). It details areas f ptential imprvement and a guideline t the effrt required t implement thse areas. The effrt t implement can be expanded t be mre specific and include estimated hurs t implement.

9 JD Edwards Pst Implementatin Systems Assessment (PISA) Functinality % Used % Unused Effrt t Implement Ptential Imprvement / Benefits Master Generatin Mderate Wrkflws t all departments Batch Cntrl Simple Lt Tracing and Tracking Inventry Price and Cst Updates Mderate MIS and Csting thrugh JDE Inventry Cunt Mderate Physical versus JDE stcks validatin Reanalysis dates Simple Re-Analysis reprts thrugh JDE Figure 3: Detail utilizatin percentage breakdwn Surce: a recent SYSTIME PISA It is essential t understand the wrk effrt required t implement a recmmendatin, as it may nt be cst effective r lgical t d s in every case. Fr instance if implementing wrkflws fr Master file generatin t all departments is estimated t take tw mnths and it nly saves tw hurs a mnth in administratin, ne wuld questin the feasibility f pursuing the implementatin f that recmmendatin. Whereas implementing physical cunting n the system may reduce the mnthlyfinancial clse time by ne week and increase inventry accuracy by 20%. In this case the tw-mnth implementatin timeline may make a lt mre sense. Priritizing and perfrming the ROI calculatin and cst-benefit analysis is critical t ensuring the PISA ROI success. Summary A Pst Implementatin Systems Assessment shuld allw JD Edwards users t target areas f the system, resulting in increase f their user buy-in and system ROI. Technical imprvements, such as imprving system perfrmance and stability, and functinal imprvements, such as autmating manual prcesses and imprving data capture accuracy, can increase user buy in and return n yur investment. The PISA assessment shuld als highlight areas that are wrking well as these prcesses can be used as benchmarks in ther areas that are nt aswell adpted in the JD Edwards system. The PISA can als be used t merely validate what yu already knw abut yur system, but require third party cnfirmatin. Althugh we are nt suggesting that the PISA be part f a SOX cmpliance audit, it can prvide the stimulus fr fcusing n areas that d need imprvement and prvide the necessary fcus fr reaching SOX cmpliance. Using a JD Edwards business partner, third party cnsulting firm, agency r persn, that has n current emtinal cnnectin t the prject r cmpany, can prvide an unbiased view f yur system, that

10 JD Edwards Pst Implementatin Systems Assessment (PISA) assists in validating knwn trublesme area(s), and generates additinal level f internal imprtance. Of key imprtance t the PISA is that it shuld be cnducted in a similar way as an audit; a structured apprach, defined wrk plan, deliverables, and dcumented wrking papers. Recmmendatins shuld be practical and feasible t implement, s as t drive the additinal value frm the implementatin and increase yur return n yur JD Edwards investment. The lw cst f a PISA shuld be mre than utweighed by the benefits that can be derived. Make sure the PISA yu cnduct is based n a slid fundatin and has all the elements built-in that ensure yu straighten ut yur implementatin, identify imprvements, fix any weaknesses, and realize the returns yu had initially intended.

11 JD Edwards Pst Implementatin Systems Assessment (PISA) COPYRIGHT Cpyright 2007 SYSTIME Cmputer Crpratin SYSTIME believes that the infrmatin cntained in this dcument is accurate at the time f its publicatin. The infrmatin herein is subject t change withut any prir ntice. SYSTIME acknwledges the prprietary rights f the trademarks and prduct names f ther cmpanies mentined in this dcument. N part f this publicatin may be reprduced r transmitted in any frm r fr any purpse withut the express permissin f SYSTIME. Further, SYSTIME des nt warrant, guarantee, r make any representatin regarding the use, r the result f the use, f the written material in terms f crrectness, accuracy, reliability, r therwise.

12 JD Edwards Pst Implementatin Systems Assessment (PISA) Abut SYSTIME SYSTIME, a 100% subsidiary f the CMS grup, is a glbal business slutins prvider delivering high quality reliable services fr the past 30 years. Additinally, SYSTIME is the third largest JD Edwards practice wrldwide and is an Oracle Certified Advantage Partner. SYSTIME has als been named the 'Oracle JD Edwards Partner f the Year, ' and ' '. Cmprehensive business and technlgy expertise and highly experienced persnnel allw SYSTIME t deliver innvative business slutins in the areas f ERP, CRM, Business Intelligence, Business Integratin, Infrastructure Management, Prcess and Quality, Testing and Validatin, and Retail/Pint f Sale. Besides a wide array f in-huse slutins, SYSTIME als prvides cmprehensive slutins thrugh strategic alliances with leading business and technlgy rganizatins in the wrld. Cntact Details Fr mre infrmatin please cntact, SYSTIME Cmputer Crpratin, at inf@systime.net

13 JD Edwards Pst Implementatin Systems Assessment (PISA) Abut the Authr Dale Kaplan Vice President - NA Cnsulting Operatins dkaplan@systime.net