Building Competitive Advantage through Optimization

Zensars SAP/ERP Experience

Ramesh Kodali
Global Head SAP Practice

Agenda

Status of ERP Systems Lessons learnt Cost of ERP and approach to optimize Case studies

Status of ERP Implementations

60% of the Fortune 1000 companies already have implemented ERP systems 70% of all companies that have installed an ERP system have yet to achieve any
significant return on investment

75% of the implementations have failed to achieve the benefits and promises
associated with successful ERP.
Additionally Only 5 % of ERP implementations were successful in terms of finishing on time, within budget & without serious technical problems A majority (58%) of companies did not manage to integrate their ERP solution with existing systems 23% of respondents said the integration procedure were unsuccessful An overwhelming 71% did not attempt to incorporate their applications as integrations are a complex, costly and a time consuming process

Why companies fail to realize the full potential of an ERP implementation

The following 8 are the most common reasons observed:

ERP software was installed to mirror a set of existing, often inadequate, business processes. Organizations were ill-prepared to conform to Best-in-Industry practices

Management did not take the time to answer the question, How do we want to run the business?
Pre-implementation activities were not well understood and often not done IT concentration may have been on technical wizardry and not focused on business excellence issues Education and training was rushed and did not bridge the gap from software to the day-to-day requirements of the operation Mapping of the old legacy systems to the new system was based on technology requirements, not users current and future needs Validation of data is not on time

How to optimize your ERP system

If you have implemented ERP and you are not realizing the return that you
anticipated, you should consider optimizing your ERP system
with your business processes and rules

When optimizing your ERP system, the focus must be aligning the application During the ERP optimization process, provide answers to the following:
Is ERP helping you to improve customer satisfaction? to contribute in increasing market share? to decrease your operational expenses? in reducing/optimizing your inventory? in reducing your order-to-delivery cycle time? to shorten your time-to-market? in achieving a competitive advantage? in giving information and metrics you need?

If your answer to any of these questions is No, then ERP Optimization

should definitely be on your critical path.

Cost spread

Cost of ERP implementation centers around

People Processes Locations Technology/Supporting Systems

Cost spread across ERP Life Cycle

Selection of right ERP package/Implementation Partner (5-10%) Project Preparation (5%) Requirement gathering/Blue Printing (20% - 25%)

Design (20% - 25%)

In-house guidance (10%)

Data Collection and validation (10%-15%)

Training (10%-15%) Testing (10%-15%) Post go-live support (10%-20%)

Zensars optimized model

Thats where Zensars comes in with most optimized ERP- SAP
Zensars SAP ERP Solutions assure the customer

Industry Vertical process expertise Reduced efforts during requirement gathering and design stage Reduces risk of successful delivery Path for ROI Stable post go-live scenario

Preconfigured Best Business processes 70-80% Processes ready to be deployed

Reduced time of implementation

Fixed time
Post implementation Support

Mature post implementation support

This is accomplished by way of offering SAP Industry Vertical solutions

A risk mitigated approach in reducing TCO

Zensars and SAP Best Business Practices Project Prep Go-Live Support

Blueprint

Design

Build

Cut-over

Assess Risk

Pre-Configured Pre-Configured Accelerators & & Components Accelerators Components

Our preconfigured approach Traditional & costly approach

Effort and Costs

Accelerated preconfigured approach

Time

Engagement model Advantages

Classical Project
Project Preparation

Business Blueprint

Realization

Go-Live Preparation

Pre-configured ERP for you

Project Preparation Demo and Gap Analysis Gap Closure and Testing

Deployment and Go-Live

Project Timeline

Reduced Implementation Effort by 30% to 50% Reduced Project Duration by 30% to 50%

Preconfigured Approach
Done by Zensar-as per requirements (Only 15-20%) Developed by Zensar- Preconfiguration of scenariosup to 80-85%

Configuration Zensars Preconfigured Industry offering

Provided By SAP

Provided by SAP

Best Practices- India Baseline Best Practices- Industry specific

SAP ERP Software (ECC 6.0)

Zensars IVS leading to Optimized delivery

Life Sciences
Manufacturing Med-devices R&D

Retail
High fashion Groceries

Textiles
Manufacturing Merchandizing Apparel

Engineering
Discrete Component manufacturing

Food
Dairy Fast foods Beverages Packaging

Case Study :GHCL Best it implementation of the year 2007

PROJECT HIGHLIGHTS:
Implementation: Vapi, Gujrat Head Office: Delhi Year of Implementation:2007
Modules: FI, CO, MM, PP, QM, SD, EMS

Case Study SANGAM Textile Best IT implementations in 2008

PROJECT HIGHLIGHTS:
Implementation:Bhilwara,Rajasthan

Head Office: Rajasthan ,India

Year of Implementation:2007-2008
Modules: FI, CO, MM, PP, QM, SD

SUTLEJ : Best IT implementation in 2008 SUTLEJ runs SAP on ZENtex

PROJECT HIGHLIGHTS:
Implementation: Jammu, Gujarat
Head Office: Mumbai Year of Implementation:2007-2008
Modules: FI, CO, MM, PP, QM, SD, EMS

The Only Indian Case 2007 SAP ASUG Vienna RPG-LS runs SAP on ZENlife

VARROC runs SAP on ZENmach

33 Manufacturing Plants
Implementation time 12 Months

PROJECT HIGHLIGHTS:
Implementation: Aurangabad Head Office: Aurangabad

Team Size 12
Solution Zensars Preconfigured SAP Certified Solution

Year of Implementation:2005
Modules: FI, CO, MM, PP, QM, SD, EMS

SULZER RUNS SAP on ZENmach

Worlds leading Specialized centrifugal pumps

PROJECT HIGHLIGHTS:

120 Locations Worlwide

Implementation: New Mumbai

Head Office: Mumbai Year of Implementation:2009

Implementation Duration 8
Team Size 12

Modules: FI, CO, MM, PP, QM, SD, PS

Solution Zensars Preconfigured SAP Certified Solution - ZENMACH

Customer Success CorePharma

Companies that run SAP All-in-one Preconfigured Solutions

Jazeera Pharma - KSA

Best it implementation of the year 2007

Indian Immunologicals

Conclusions

Key is on the selection processes

Insist on ERP vendor with pre-configured processes that suit your industry (70% atleast)

Identify critical processes and ask the vendor for demo of these processes
3-4 day scope study prior to contract signing to avoid cost overrun Previous Industry experience of the vendor A sample and demo run of the training program

Thank You