PREPARING FOR AN ERP
IMPLEMENTATION
Presented By:
Sharhonda M. Rush, CPA - Controller
Jacksonville Transportation Authority
Today’s Topics
✓ What is an ERP and why is it important?
✓ Helpful strategies to document “current state” and
“future state”
✓ Case study and lessons learned
✓ Ten things to consider when preparing for
an ERP Implementation
What is an ERP and why is it important
to governmental agencies?
✓ ERP- Enterprise Resource Planning
The integrated management of the main business
processes leveraging the use of software and
technology to automate processes and streamline
reporting.
https://www.mydbsync.com/blogs/benefits-of-automating-erp-system/
✓ Main Business Processes may include:
Human Resources, Customer Management, Supply
Chain and Inventory, Facilities Maintenance with
work orders, Procurement, Payroll and overall
Financial Management
✓ There are several popular ERP systems:
SAP, Sage, NETSUITE, Oracle, Microsoft Dynamics 365,
PeopleSoft and many more.
✓ Why are ERP systems important:
These systems help to improve internal business
processes and increase productivity by integrating
data and processes across several areas of the
business.
✓ A practical example:
A Procurement Department uses paper purchase
orders. These purchase orders are sent via interoffice
mail to several departments and require several
signatures.
Once approved, the accounting team has a full-
time person responsible for keying the data into
the accounting system so Finance can track
these encumbrances.
✓ An ERP system could improve business processes
Problem: Inefficient paper driven process which
lacks integration with the financial system
Possible Solution: Improved approval and
processing time; better use of headcount and
automatic integration from procurement to
general ledger.
✓ Which ERP System is right for your organization?
It depends on several factors including the size of
the organization, the budget and timeline.
This process also requires a thorough assessment of
the current state and the expectations of future
state of the main business processes.
Some strategies to document
“current state” and “future state”
✓ Let’s talk about your current state
Do you have policies and procedures documented
for the main business processes?
If not - document, document, document !
Take this time to understand the existing processes
Identify pain points and processes that work well
Without this understanding, you are not ready
to implement a new ERP system.
✓ Lay a Solid Foundation
Involve the people who actually do the work -
ensure it is a cross functional team
Have workshops/working sessions so the process
has everyone’s attention
If possible, identify process improvements in
your current environment.
Make it fun! Have a competition to see who
comes up with the most innovative idea!
✓ Strategies to Document Your Current State
✓ Leverage in house expertise
✓ If possible, use something visual - flowcharts or
swimlanes work well to visually understand
your current processes
✓ Use PowerPoint or Microsoft Word – doesn’t
require expensive flowchart software
✓ Example of Procurement Process Swimlane
http://pslides.com/
✓ Are you ready to discuss future state?
✓ Not so fast!
✓ Validate, Validate, Validate!
✓ Present the visuals and documentation to the
group for feedback to ensure it’s accurate
✓ Once the current state is confirmed and
documented properly then you are
ready to for the next step!
✓ Mapping out Your Future State
✓ Partner with a vendor who has experience within your
industry and with the chosen ERP solution
✓ Understand the flow of the new ERP Solution to maximize
the use of the new technology
✓ Ensure that processes are “value – adds” and consider
eliminating or automating them if they are not
✓ Fit Gap Analysis
✓ Fit Gap Analysis is a phase during Fit
the ERP Implementation
✓ Goal is to Identify and suggest ways to Required Future State
bridge the gap between the required Processes with ERP and
AS IS State Best Practices
business processes and the functionality
the ERP System brings
✓ Fit Gap Analysis is best designed after you
have selected a vendor for the ERP Implementation
Gaps
✓ Mapping out Your Future State
✓ If there are gaps between what you need and what the
new ERP solution offers, see if that process is really needed
✓ Avoid customization if at all possible
✓ Ensure you have considered everything in the future state.
All pain points have been addressed and you have note-
worthy process improvements!
✓ Mapping out Your Future State
✓ In the event a user/department has new responsibilities for
data entry, etc. that didn’t exist before, be sure to share
that also and explain the downstream benefits
✓ Brag! Brag! Brag! – in order to get end user buy-in and
adoption of the new ERP system be sure to document the
benefits, role by role and process by process.
Case Study and Lessons Learned
✓ Case Study – Jacksonville Transportation Authority
www.jtafla.com – Case Studies
✓ The Issue
✓ More than 20-year-old computer system
✓ Paper driven processes including HR and
Procurement
✓ “Green Screen”
✓ Inefficiencies and duplication
of efforts
✓ The Solution
✓ One of the first major initiatives under the new CEO
was to implement a new ERP system that changed
the way JTA does business.
✓ The Authority branded the Project “FireFly” with the
tagline – “Bringing JTA’s Information to Light”
✓ Firefly is a symbol of economy, efficiency,
inspiration, ideas and communication –
all elements critical to the JTA’s success
✓ The Process
✓ Was implemented in four stages that included an
assessment of the current system as well as
designing, building, and user acceptance testing
before it went live in 2014.
Assessment Design Build Testing
✓ The Process
✓ Project Implementation team included JTA Staff
Experts/SMEs to ensure future state was as intended
✓ The phased work was guided by a command
center to coordinate efforts across all platforms.
Consultants were heavily involved and on-site
during the process from start to finish.
✓ Project took nine months from planning to
implementation, less than half the time it typically
takes to implement an ERP system of this scope
✓ Frequent Communication & Ambassadors
✓ Employee Newsletters
✓ Frequently Asked Questions
✓ Employee Led Project Teams for:
Grants/Projects HR
General Ledger Fixed Assets
Procurement AP & AR
Inventory Payroll
✓ Employee Video - Mission Possible!
Employees from Several Divisions – IT, Procurement,
Operations, Facilities, Maintenance, Accounting, and
Executive Offices
Lessons Learned
✓ Lessons Learned
Conduct value stream mapping to determine
where you want to be when the systems are
implemented.
✓ Lessons Learned
Ensure that outside consultants completely
understand the operation of your business
before they make recommendations.
✓ Lessons Learned
Devote staff to the initiative full-time so they
can focus on the project from planning
through implementation.
✓ Lessons Learned
Manage the change by putting people who
are open to the change in key roles.
Finance & Procurement SMEs
Used the chosen ERP system in previous roles outside of JTA
Change Management
✓ Change Management
✓ Expect Resistance
✓ Support those affected by the change
✓ Know your audience and tailor your
communications accordingly
✓ Ensure there is timely and consistent
communication throughout the process
✓ Include all affected by the change in the process
“ THE SECRET OF CHANGE IS TO FOCUS YOUR
ENERGY NOT ON FIGHTING THE OLD, BUT ON
BUILDING THE NEW.
”
Ten Things to
Consider for an ERP Implementation
✓ Things to Consider
✓ Know your Requirements – document current state
and ensure pain points are addressed
✓ Follow the Procurement Processes – RFP, RFI, etc.
and check references
✓ Select a Vendor with Experience in Your Industry
✓ Things to Consider
✓ Establish Executive Level Steering Committee (Find
Ambassadors and Champions of the project)
✓ Hold a Project Kickoff Meeting
✓ Communicate with everyone often to gain buy-in
and support throughout the process
Ten Things to
Consider for an ERP Implementation
✓ Things to Consider
✓ Minimize Customizations – can make it difficult for
future upgrades and can increase cost
✓ Consider a phased approach
✓ Ensure Training Occurs at All Levels
✓ Follow Procurement & Contract compliance
rules and monitor your budget and timeline
closely
Recap
✓ An ERP allows you to automate business processes
and integrate several areas of the governmental
agency into one system.
✓ Integration can remove duplication of efforts and
improve transparency and visibility to key
stakeholders.
✓ Use the ERP implementation project as an
opportunity to improve your business
processes
Recap
✓ When documenting your current state, use in
house resources including those actually doing the
work. They may present ideas for improvement
that only someone close to the work can share.
✓ Be Careful Not to Bring the Flaws of your current
processes into the new ERP system.
✓ Get all employees involved and make it fun!
Recap
✓ When documenting your current state, use in
house resources including those actually doing the
work. They may present ideas for improvement
that only someone close to the work can share.
✓ Be Careful Not to Bring the Flaws of your current
processes into the new ERP system.
✓ Get all employees involved and make it fun!
Thank you!
If you would like more information or have specific
questions, please feel free to contact me.
Sharhonda Rush
[email protected]
(904) 630-3116
