Enabling Services Renewal Program (ESRP) Moving Mountains HRSDC s Journey Towards an ERP Implementation
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1 Enabling Services Renewal Program (ESRP) Moving Mountains HRSDC s Journey Towards an ERP Implementation FMI Presentation November 27, 2012 Gary Doucet and Hélène Paquette
2 Context and Objective Context: HRSDC is transforming financial, materiel, human resource, and IT management to have: Improved Service; More efficient operations; and Improved Stewardship. Objective: Share our experiences, lessons learned, current challenges and potential opportunities for others. 2
3 Enabling Services Renewal Program (ESRP) Program Summary Two Major ERP s simultaneously SAP for Finance and Materiel Management PeopleSoft for Human Resource Management Other BackOffice Process and Systems IT Management (From demand to delivery and operations) Supporting Services: Case Management, Imaging, Workload Management, Analytics, Contact/Interaction Centers, etc. Client centered service design Click-Call-Consult Integrated across service lines (e.g. HR, Finance, IT ) Maximum Vanilla 3
4 What is ESRP? PS SAP Pay Other Enterprise Resource Planning Service Delivery Integration Clients Other Practitioners 4
5 ERP - SAP Project Summary Multi-year, key component project of the ESRP Highlights: Replace the financial and materiel management components of legacy Corporate Management System (CMS) with the Treasury Board endorsed ERP standard (SAP version ECC 6.0) Support transformation of HRSDC s practices in the area of financial and materiel management. Includes adoption of Office of the Comptroller General (OCG) standards: Common Financial Management Business Processes (FMBP) Common Enterprise Data Initiative (CEDI) and Common Financial Management System Configuration (FMSC) Integrate to HR and other non-financial processes 5
6 New Approaches New business design techniques with business transformation as a driver Also using methods like Accelerated SAP Comprehensive Integration Strategy (see appendix 12-13) Operating models to control variances, customizations and future proofing (see appendix 14-17) 6
7 Business Processes - HRSDC Alignment to OCG FMBP Business Process Area Expenditures and Accounts Payable A business process area is a high level grouping in the business process hierarchy used for classification and reporting purposes. FMBP Business Scenario Manage Procure to Payment A business scenario is a set of processes that define a business task in a comprehensive and self-contained manner on a macro level. Business Process Manage Contracts A business process is a set of logically related activities performed to achieve a defined business outcome. HRSDC SAP BPML Process Step Create Purchase Order Business Activity / ERP Transaction 1700 A process step is an elementary activity performed to accomplish a process. ME21N 7
8 Current Challenges and Opportunities Breaking through Practitioner Model Understanding the Birth of Data Real ERP versus ERP Software Finding the Customer. Understanding Difference of Value Partnering 8
9 9
10 Appendix Appendix 10
11 Interoperability - Interaction Scenarios HR System Presentation Employee Records Master Data Organizational Structure Finance System Presentation Integration Transactional Data Integration Modules Time Tracking Training Modules Workflow Financial Signing Authority Accommodations 11
12 Reporting Strategy Define and integrate the value creation chain across the entire organization from the strategic to the operational level by adopting measurement techniques that proactively report on business processes. HRSDC Corporate Data Warehouse Strategic Enterprise-wide Reporting Corporate Data Warehouse manages and measures departmental operations in support of the HRSDC strategic objectives. Measure and report KPIs and CSFs required to keep focus on HRSDC s Strategic Business Objectives (SDI/EDSS) SAP Business Warehouse Strategic & Tactical Reporting for Finance & Materiel SAP BW performs timely strategic analysis and reporting to support senior management s critical decision-making process. Aligning KPIs and PPIs to Critical Successful Factors for performance management.(erp COE) SAP ERP Transaction System Operational Reporting for Finance and Materiel SAP ECC monitors KPIs and PPIs and responds quickly to a variety of short-term situations. (ERP COE) 12
13 Operating Model - Project Approach & Tools The project has evolved a Business/Solution Operating Model to allow the project team to consistently deliver value by aiming for a vanilla solution. The model is used to evaluate business requirements in order to recommend a solution approach that maximizes value while minimizing costs. 13
14 Operating Model - Design Principles Vanilla Avoid all customization of COTS (Modification of Vendor Code) Multi-Tenant Build must support other departments and allow for multiple service entry points GOTS Build must use solutions that can be licensed across GC and are supported by CIOB Open Standards - Based Open standards and a loosely coupled architecture are highly desired (Avoid adapters and customization) GC Standards Based = Future Proofing Follow GC standards. E.g. ERP Standard = PeopleSoft and SAP including interoperability Adhere to common processes from OCG and OCHRO ERP First When a process can be done in ERP it should be done in ERP even if it requires procurement. E.g. PPM ERP Technology stack must remain intact to exploit COTS functionality and leverage vanilla for lower TCO 14
15 GoC Opportunities Solution Reuse (design of instance): Modern technology and processes will deliver greater efficiencies that lower TCO for the GC GC standards: Potential for partnerships because of use of GC standards such as FMBP, CEDI, FMSC Global template: Could be used by other departments: Common Business Configuration Technology Landscape Technical Infrastructure True ERP: Provides the foundation to enable the implementation of a true Enterprise Resource Planning (ERP) solution beyond the traditional functional silos Model for real continuous improvement. 15
16 Variance Management Process within Operating Model 16
17 Solution Manager - Central Tool for Managing SAP 17
18 Business Processes - Alignment to SAP Solution Manager At the start of the Build (Realization) Phase, the HRSDC Finance BPML will be loaded in SAP Solution Manager. This will include all scenarios, processes and process steps. These will be then be linked to SAP functionality All configuration, development, testing and training will be limited to the in-scope business process hierarchy 18
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