Digital Transformation (DTX) Playbook - Chapter 6 Enterprise Business Systems & Global Shared Services Excellence

In Segment Two of the Digital Transformation (DTX) Playbook we are focused on Enterprise Business Systems (EBS) & Global Business Shared Services (GBSS) optimization, Master Data Analytics (MDA) & Role Based Dashboards, Business Process Mining (BPM), Robotic Process Automation (RPA), and Human Capital Management (HCM) & Digital Mindset systems that allow Global Business Shared Services to scale and enable business end-to-end processes to create Customer Value.

By definition Enterprise Business Systems (EBS) are the combination of Enterprise Resource Planning (ERP), Human Capital Management (HCM), Customer Relationship Management (CRM), Supply Chain Management (SCM), and Manufacturing Resource Planning (MRP industry if applicable) all integrated single instance of each platform with minimal custom development. ?By definition Global Business Shared Services (GBSS) is Backoffice and Frontoffice functions that make sense to centralize and decentralize to scale, increase productivity and speed to the greatest level of efficiency with a customer centric mindset.

Most large global companies struggle with this integration and consolidation of platforms but it essential to optimize a business and enable a Digital Transformation.? Sometimes this is not by design but by acquisition and/or by lack of interest in integrating the business lines vertically and horizontally.

When companies do achieve a single instance of ERP, HCM, CRM, SCM and MRP they outperform companies that have not completed this goal.

I have been with some great teams and fortunate enough to complete this for numerous companies which helped all of them reach a Fortune 500 and 1000 status and achieve The Hackett Group Inc. and Gartner Master Class level benchmark scores compared to the Peers in those industries as well as other industries.

Simply put it helps business take out technical debt, stay current on new features that enable business process, enables Digital Transformation and improves employee experience, customer excellence, operational excellence, supply chain excellence and global business shared service excellence.

In this Chapter, we will focus on the importance of Enterprise Business Systems integration and establishing Global Business Shared Service excellence.

Embracing the Future with Integrated ERP Systems: A Holistic Approach to Business Process Management

In the dynamic landscape of modern business, the integration of Enterprise Resource Planning (ERP) systems with Human Capital Management (HCM), Customer Relationship Management (CRM), Supply Chain Management (SCM), and Manufacturing Requirement Planning (MRP) stands as a beacon of efficiency and innovation. This harmonious convergence of technology and business processes optimizes Global Business Shared Services —including Record to Report (R2R), Plan to Produce (P2P), Inquiry to Cash (I2C), Hire to Retire (H2R), and Requisition to Pay (R2P) —has transformed the way organizations operate, enabling unparalleled levels of strategic alignment and operational fluency. It is also the foundation for Digitalization!

The Strategic Value of Integrated Systems & Global Business Shared Services

The journey from siloed functions to integrated systems represents a pivotal shift in organizational mindset. At its core, the integration of ERP, HCM, CRM, SCM, and MRP systems reflects a commitment to operational excellence and a strategic vision for future growth. By weaving together the threads of various business processes, companies can achieve a comprehensive view of their operations, leading to informed decision-making and agile responses to market dynamics. Global Business Shared Services (GBSS) varies by company but the fundamental principle of optimization of GBSS is defined by agility, speed of? business, efficiency, scalability, employee empowerment, and customer value.

Record to Report (R2R) & Beyond: A Symphony of Efficiency

The Record to Report process exemplifies the seamless flow of information that integrated systems facilitate. By ensuring that financial data from various departments is accurately captured, processed, and reported, organizations can maintain financial integrity and compliance. A good General Ledger system has an integrated Project Costing system to help those companies who need to management of project costs. This foundation supports other critical processes, from Plan to Produce—optimizing production planning and execution—to Inquiry to Cash, enhancing the customer journey from initial contact to final payment. Benefits include an integrated system closing the books in one day can be achieved even for the largest multi-billion companies. ?The value of real time information before a quarter close to gain insight to be proactive in business decisions is invaluable. ?In the next chapter, we will also go deeper on Master Data & Reporting Analytics for Planning, Budgeting and Forecasting excellence and leveraging a good R2R platform.

Empowering People: From Hire to Retire (H2R)

The integration of HCM within the EBS framework underscores the importance of people in the digital transformation equation. From Hire to Retire this aspect of integration places employee lifecycle management at the heart of organizational success. By aligning HR processes with overall business strategies, companies can cultivate a digital mindset workforce that is not only highly skilled (Digital Mindsets) but also deeply engaged and aligned with corporate goals. HCM & Digital Mindset will be discussed in depth in Chapter 9 – Human Capital Management and address Talent Acquisition, Talent Development (Digital Mindset), Talent Management, and Talent Governance & Diversity.? Companies with a dependency on labor cost visibility need these HCM platforms working in integrated way with ERP Project Costing and Billing systems for business optimization. In Chapter 10, we will cover in more depth the Employee Excellence experience of the Digital Transformation DTX Playbook. ?Benefits in summary are attracting, retaining, developing, incentivizing, and empowering employees to serve customers. Great HCM programs can reduce turnover, improve employee productivity and teamwork, and improve the customer experience.

Streamlining Operations: Requisition to Pay (R2P)

The Requisition to Pay process further demonstrates the operational efficiencies gained through integrated systems. By automating and linking procurement activities with financial operations, organizations can optimize their spending, enhance vendor relationships, and achieve cost savings through streamlined workflows and improved oversight. Leveraging tools to allow for Supply Chain Category Management, Spend Analysis, touchless 3-way match processing, Pcards, and Travel & Expense systems can bring significant cost savings to the table. Benefits include cost savings in category spend management, efficient backoffice and frontoffice business processing, and resiliency in supplier management. In the Digital Transformation Segment of the DTX Playbook we will go deeper into the Supply Chain Excellence Digital Transformation of R2P.

Streamlining Operations: Inquire to Cash (I2C)

The Inquire to Cash (I2C) process further demonstrates the operational efficiencies gained through integrated systems. By automating and integrating Customer Relationship Management (CRM) systems with customer order entry, electronic billing?and accounts receivable platforms can optimize their cashflow, enhance customer relationships, and achieve cost savings through streamlined workflows and improved oversight. Benefits include retention of customers and capture of marketshare driving material shareholder value. In the Digital Transformation Segment of the DTX Playbook we will go deeper into the Customer Excellence Digital Transformation of I2C.

The Importance of Integration & Gen AI Co-Pilots for Global Business Shared Services

At the intersection of ERP, HCM, CRM, SCM, and MRP lies the key to unlocking true business potential. This integration goes beyond mere technological upgrade - it represents a strategic imperative for sustainable growth. The holistic view provided by integrated systems enables businesses to navigate complexities, leverage opportunities, and mitigate risks in a proactive manner. Moreover, it fosters a culture of continuous improvement, innovation, and collaboration, setting the stage for enduring success.

All of these platforms now are building Co-Pilots to help with Gen AI solutions to untap legacy data and systems that have failed to deliver value to their organizations. We will see now that Gen AI will extend the value of legacy ERP, HCM, CRM, SCM, and MRP platforms.? Leveraging an integrated single source of the truth architecture enables Gen AI to be more useful and helpful.

The importance of having integrated systems allows you to position your Global Business Shared Services (GBSS) strategically located to be able to handle business 24x7 while optimizing costs.? GBSS can now scale to new levels of efficiency, productivity, and customer excellence with integrated tools. In Chapter 8 – Business Process Mining (BPM) & Robotic Process Automation (RPA) & Role Based Dashboards you will learn how BPM & RPA tools are used to embrace a “Lean into the Red” Digital Mindset for continuous improvement.

What is Continuous Improvement “Lean in to the Red ” Mindset?? When developing Role Based Dashboard for your GBSS team make sure they have visibility and transparency to your end-to-end processes and have metrics that are lead and lag oriented to help them find ways to continue to improve efficiencies. A Lean into the Red Mindset is embracing being in the red is ok, you keep performing root cause analysis and drive productivity and efficiency by finding and solving challenges. If you meet your metrics for 3 months in row and turn your dashboard green, you raise the bar for the next quarter and turn your dashboard red with higher threshold metrics until you reach Peer, World, or Master Class benchmark performance. This is a journey and embracing a culture to Lean into the Red results in high performance culture and World Class companies.

?Summary of Benefits

As we look to the future, the value and impact of integrated Enterprise Business Systems (EBS) - (ERP, HCM, CRM, SCM, and MRP) systems in harmonizing and optimizing business processes cannot be overstated. In an era where adaptability, efficiency, and strategic foresight are paramount, the integration of ERP with HCM, CRM, SCM, and MRP systems stands as a testament to the scalable transformative power of technology. By embracing this integrated approach, organizations can not only enhance their operational efficiency but also sharpen their competitive edge in the ever-evolving business landscape. Future benefits include quicker and faster integration value realized on future acquisitions and an empowered workforce to move at the speed of business.

In many cases, consolidating and integrating these systems takes out technical debt, improves costs ratios ahead of the competition, and enables the speed of business and customer service excellence. But it is not all about cost take out, these integrated systems improve Customer experience and help with market retention and market capture of new business.

Key Deliverable:

1.????? An Integrated Interconnect EBS Architectural Diagram

2.????? ERP Architectural Diagram

3.????? HCM Architectural Diagram

4.????? SCM Architectural Diagram

5.????? CRM Architectural Diagram

6.????? MRP Architectural Diagram

7.????? Master Data Plan, Analytics & Role Based Dashboards

8.????? Gen AI Architectural Plan & CoPilot Strategy

9.????? Enterprise Business Systems Implementation Methodology

The rest of Segment 2 of?the DTX Playbook is Chapter 7 – Master Data Analytics & RoleBased Dashboards will be next followed by Chapter 8 - Business Process Mining & Robotic Process Automation, followed by Chapter 9 – Human Capital Management & Digital Mindset. ?We will then be ready to share the Digital Transformation Segment 3?of the DTX Playbook.

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