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Enterprise Applications
Center of Excellence

A Maturity Model
Michael Doane
META Group
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Why an ERP Center of

Excellence?
 An optimization of business
processes that drive business
benefit continually

 An optimization of end user

competency and employee
fulfillment of business processes

 Continued coherence and

integration of functionality and
data through all process chains
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Center of Excellence Functions

Business

Prepare the company for

transformational change
To Be (all the time)
Continuous
business improvement

Optimization of current
system usage
As Is Maintenance and support
of ERP and related
functions (ERP/CRM/SCM)
IT

Parameters: Business Applications Span (ERP is the backbone)

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 It is imperative to link Profit & Loss

end users to profit & loss Key Performance Indicators

Sample Business Performance KPI’s
 Without measurement, Return on sales
Return on assets
you cannot begin Net sales per employee
Ratio of Assets/Liabilities
 Business process
improvement is the Business Process Drivers

source of measurable Sample Major Business Processes

business improvement Order Fulfillment Procurement Production
Process Process Process
 IT also has its ‘business
processes’: reduction of
SAP User Competency
IT costs applies to this
Software
value chain

The Enterprise Applications Value Chain

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Foundation of Organization Planning

 Two aspects of “IT”
• Business-specific activities = the Center of Excellence
• Infrastructure/support ~ “Foundation Services”

Center of Excellence
Infrastructure/

IT Resource/
Governance
Operations

Architecture
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Enterprise Program Management
Remote

Process Owners
Process Oversight
Users Users Users Users
Users Users Users Users

Help Desk

Continuous Education Continuous Education

Functional Oversight Finance Sales Logistics Production

Software Configuration & Support

Custom Applications

Custom Applications

Integration Management
(Functional, Cross-Application)

Integration Management (Technical)

Production Control/Change Management

Multi-site Virtual CoE

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META Group Maturity Modeling

Levels 1-5
Elements or best practices (weighted)
Up to 10 per maturity level

Categories

METAmap (META Group Maturity Assessment Program)


Center of Excellence Maturity Model
Business/
Level IT Alignment
There is a link between
1 Core ERP business and IT for
configuration updates.
The role of business in ERP
2 Stable ERP
evolution is defined.
Business has active
ownership of business
3 CoE Defined
processes. Current KPI is
measured.
KPI measures and targets are
in the system. EPMO directs
4 CoE Managed
business process
transformation.
Business process change is
guided by KPI performance
5 CoE Evolving
and configuration is in the
hands of business.
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Enterprise End
Applications Users Infrastructure
ERP is not overly
Basic end user training is ERP infrastructure is
customized; core
complete. adequate.
implementation is complete
ERP is the backbone of
End users fulfill ERP
enterprise applications.
functions without excessive ERP infrastructure is stable.
Applications interfacing is
help desk or support.
complete.
ERP infrastructure is flexible.
The applications portfolio is End users receive periodic
Apps data is generally
inventoried. refresher training
synchronized.
End users are trained to
The applications portfolio has business processes and Enterprise applications
been rationalized. continuous training is in infrastructure is flexible.
place.
End user job performance is Enterprise applications
The applications portfolio has
linked to business process infrastructure is adaptive to
been optimized.
performance applications changes.
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The Consequences of Implementation

Concerns Pre Implementation Mistakes Noted After Implementation

•Scale 1=Unimportant, 5=Very Important

Source: The State of ERP Services Multi-Client Study, META Group 2003
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Do you have some form of a CoE?

21
1%
1.Yes

2.No
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Level 1 Core ERP

 ERP is at the center of an applications portfolio

 The elements for this level are generally identical to
those of a successfully completed implementation
 It is imperative to keep the project team intact and
ready for transfer to the Center of Excellence
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Level 2 Stable ERP

 Most new ERP installations take 3 to 4 months to

achieve a state of stability

 In this period, project staff transitions to the Center

of Excellence
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Level 3 CoE Defined

 After stabilization of ERP, the Center of Excellence is

functional

 Attention turns to measures & benefits

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Level 4 CoE Managed

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Level 5 Evolving CoE

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End Users
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Business/IT Alignment
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Infrastructure
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Enterprise Applications
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Results by Maturity Elements

Results by Category
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Overall Results

METAmap (META Group Maturity Assessment Program)

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Of those who have a CoE, which

level have you attained?

1. Core ERP
2. Stable ERP
3. Defined CoE
4. Managed CoE
5. Evolving CoE
0% 0% 0% 0% 0%
1 2 3 4 5
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Keys to CoE headcount control:

1. Support given to Business Process Owners
2. Direct software configuration by CoE (business-led)
3. Active competency management/continuing knowledge transfer
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Conclusion/Recommendations
 The CoE must be led by business staff
and business concerns (measurable)

 A CoE will be sustained if measurement

and business benefit are at the
foundation
• People/processes tend to decay
through time

 Maturity is accelerated when benefits are

achieved