Achieving Best Business Performance

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Achieving Best Business Performance

• Mark R. Willford, Partner
• Accenture

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What well cover in this session

• What makes a Best Business?
• Results from Accenture research study
• The Top Ten things best businesses do to improve
  business performance
• Getting Started

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What makes a Best Business?

• They focus their workforce on core competencies.
• They take a pragmatic approach to technology
  adoption and integration.
• They take advantage of innovations to create
  market opportunities and enhance productivity.
• They consolidate and standardize IT to manage
  their total cost of ownership.

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According to an Accenture survey of 163 companies
worldwide, only 41 of companies have achieved
the majority of targeted benefits from their ERP
systems
Source Accenture Institute for Strategic Change
Accelerating Enterprise Systems Thought
Leadership Research - July, 2002
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1 The best businesses view enterprise systems
as an ongoing program to improve performance and
drive value
Most Companies Are Here
High
Ubiquitous Processes
Anywhere, anytime, on any device
Collaboration
sharing business capabilities with partners
Process Integration
creating new processes and services to support
business needs
Application Integration
leveraging functionalityin applications
Data Integration
...synchronizing systems...
Data Transport
moving data
Low
High
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2 Accelerate value realization by planning
and organizing for success

• Define business benefits upfront
• Specify business metrics
• Use the metrics to measure business performance
• Establish accountability for achieving business
  benefits and ROI from Enterprise Solutions

34 of companies either do not have a business
case that identifies specific benefits when they
implement enterprise solutions OR they do not
actively measure and capture benefits. Accenture
research
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3 Operate their business in real-time with
access to integrated information that transcends
the business

• New sources of data
• Combined with cheaper data storage
• Faster processing power
• And more effective data analysis
• will enable companies to gain actionable
• insight in real time.
• SAP BW/SEM enables executives to view a
  dashboard of real-time information about
• the business

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4 Maximize the value of their supply chain
and relationships with partners

• Leading companies incorporate the supply chain
  into their business strategy
• Devote significant attention to the design of an
  integrated operating model
• Build innovation into your supply chains
• Integrate demand and supply planning across the
  chain
• Focus on technology strategies and effective
  implementation
• Selective outsourcing
• Focus on both supply chain sales and service
• Rigorously execute against your strategy

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5 Differentiate their business in the eyes of
the customer using customer insight and customer
integration

• Increase customer satisfaction
• Develop customer loyalty
• Grow revenues
• Improve productivity
• Reduce costs
• Drive profitability

Customer / Channel Partner
Customer Interaction Platforms
Premise
Wireless
Phone
Web
Mail, Fax, Email
Field
Web
Web
Customer Interaction Capabilities
Customer Data Acquisition
Partner Relationship Management
Campaign Execution
Selling Sales Admin
Billing Collections
Customer Service
Field Service
SAP Core
Customer Interaction Capabilities
Content Management
Customer Data Governance
Customer Context
Customer Insight
Market
Market Research
Needs Assessment
Offer Packaging
Offer Optimization
Offer Development
Campaign Management
Customer Segment Management
Research
Analysis, Modeling Scoring
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6 Extend standardized SAP applications only
to gain competitive advantage

• SAP products enable easier integration with other
  applications
• Customization approaches range from partnering
  with SAP on industry solutions to developing
  in-house applications
• Continue to standardize applications for routine,
  non-strategic processes

70 of firms have built or were planning to build
custom applications for competitive
advantage. Accenture research
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7 Adopt a Business Readiness program to
ensure all areas of the business are working
together and are engaged
Business case management Organizational
Alignment Ownership and Accountability Critical
Decision-making People Alignment
Senior Management

• Project Team
• Business People
• IT
• Integrators

Middle Management
Fully Engaged
Staff
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8 Optimize their Enterprise Architecture to
drive business value
SAP NetWeaver
People Integration

• Lower TCO
• Common infrastructure
• Open for integration
• Aligned software strategy

Multi-Channel Access
Composite Application Framework
Life Cycle Management
Collaboration
Portal
Information Integration
BusinessIntelligence
KnowledgeManagement
Master Data Management
Process Integration
Integration Broker
Business ProcessManagement
Integration Broker
Application Platform
J2EE
ABAP
DB and OS Abstraction
DB and OS Abstraction
Image source SAP AG
.NET
WebSphere

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9 Understand their core competencies and
outsource everything else
Outsourcing Spectrum
TransformationalOutsourcing End-to-End Sourcing
Strategic Value
Create new and innovative ways to realize
business strategies while refocusing cost
Transformational
Business Processes
Multiple non-core processes outsourced value
driving CEO-level decision-making
Collaborative
Business Applications
Conventional
Traditional outsourcing solution, one or more
non-core processes outsourced independently
price typically driving decision making
TacticalValue
Technology Infrastructure
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10 Assess and adopt new technologies that can
empower the organization
Accenture research Percentage of organizations
planning to experiment with the technology within
the next two years

• Question What other technologies on the horizon
  might provide your organization with improved
  business performance?

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Getting started

• Review your business case to assess whether
  benefits were achieved or yet to be realized
• Assess the alignment of your organizations
  people, processes and technology with your
  strategy
• Do a value assessment to understand where the
  real value opportunities are in your company
  short-term and long-term

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Questions?

• Drop me a note at mark.r.willford_at_accenture.com
• Ask for a copy of Accentures research report,
  The Return of Enterprise Solutions The
  Directors Cut