Semantech Inc. ERP Solutions

ERP Solutions
Agile Enterprise Resource

Planning Solutions – Innovative
Strategies to Reduce Risks.
Presented by Stephen Lahanas
February 24, 2010
Copyright 2010, All Rights Reserved – Semantech Inc.

Introduction
• This presentation introduces a unique approach to ERP

transformation for large enterprises.
• We will explain the challenges and misconceptions

associated with traditional ERP solution approaches
and how those impact project success.
• We’ll describe the Semantech Inc. alternative to

traditional ERP deployments – Our Agile ERP solution
will help to redefine industry best practice.
• Presentation Theme: “ERP is Enterprise

Transformation, not just an ERP software package.”
Copyright 2010, All Rights Reserved – Semantech Inc. 2

About Semantech Inc.
• Semantech Inc. is a small, woman-owned business

founded in 2007. The company is located near
Dayton, Ohio. Since our inception we have supported
clients in a variety of industries nationwide.
• Our charter is to provide enterprise-level solutions and

to develop innovative approaches to better solve IT’s
most troubling problems.
• Our underlying premise is founded upon the

realization that traditional IT is largely an exercise in
Chaotic Semantics. The unification of process, logic
and data is Semantic Integration.

An Innovation Framework
At Semantech Inc., Innovation is not a mandate, it’s our passion…

How Does ERP Fit ?
An End-State ERP infrastructure – but does this

represent all IT capability and if not how does it fit within
the larger system of systems environment ?

Why ERP Projects Fail
• ERP projects have some of the highest rates of failure

of any IT projects.
• Many studies have placed the ERP Project failure

rates as high as 75% with 90% of projects coming in
late and over budget.
• So, why do they Fail?

1. Because ERP is not a Silver Bullet.
2. Because the ERP software is a small part of the
actual project, but that’s not always recognized.
3. Because changing an enterprise is hard – it
implies a new way of doing business…
Section 1:
ERP Challenges
& Misconceptions

Challenge 1 - Scope
• Every ERP project is an enterprise Transformation –
this means that business processes, systems and data
will change. This change is usually dramatic in nature
and any dramatic change in IT is risky…
• The larger the enterprise, the larger the challenge for

ERP deployment. ERP solutions do not scale well –
especially in situations where an organization has a
certain amount of diversification built-in (i.e. a business
with multiple lines of business).
• Even within the ERP product stack, ERP is more than one
product – it is a pre-integrated suite. Outside of the stack,
there will be elements that need to be integrated.
Module-Based Product Suites
ERP solutions come in modules. The

exact configuration is vendor
dependent but there are industry
standard categories as well as data
exchange standards to support those.
Many ERP projects base their
implementation strategies around
module deployments. The number of
modules available has grown
significantly over the past 15 years.

Challenge 2 - Process
• The mission of an organization is manifested in its
processes. Often times, the standardized best practice
processes embedded within an ERP application suite
simply will not support a unique mission.
• Any ERP solution will need to take into account the

reconciliation of old and new processes as well as the
cutover between them.
• In many cases, customizations or integration must

occur in order to support mission critical business
processes and missions. The question if this occurs is
whether the customization begins to outweigh the
benefits of ERP standardization.
DoD ERP Initiatives
DoD ERP projects are even more

risky than most commercial ones –
because ERP software was not
designed around military processes.

Challenge 3 - Data
• Systems without data have minimal benefits. The
promise of ERP largely is the promise of integrated
data management.
• ERP systems are transactional in nature, so other data

architectures must be added to them in order to gain
more sophisticated analytic capabilities. The amount of
work to optimize the data architecture is generally more
extensive than most clients realize.
• Data integrity and reconciliation tends to be one of the

most problematic areas for typical ERP
implementations. This becomes exponentially more
complicated when other systems are “bolted-on.”
DoD & USAF ERP Initiatives
DoD ERP solutions do not occur out of larger

transformation contexts. The USAF is a good example; it
must also correlate Legacy and Data Center initiatives.

Challenge 4 – Legacy Systems
• “Legacy systems” are what run the enterprise before
ERP systems are deployed. Often times there are
dozens or 100’s of them – typically, these must map
over to a dozen or less ERP modules or packages.
• Legacy Transition is the most difficult part of any ERP

implementation, it is where the majority of risk resides.
It is also often the most expensive part of an ERP
project – even though it isn’t generally budgeted
comprehensively up front.
• It is extremely dangerous to automatically assume that

an enterprise can transition to an ERP suite without
assessing legacy capability and processes first.
The Big Question
The biggest challenge related to ERP is the Big

Question: Will ERP work in this environment, will it
support our mission ?
The reason it is a challenge is because often times the

decision to pursue ERP solutions is made without a
preliminary process and technical assessment. The
assumption is made that ERP will solve current
integration issues and business inefficiencies – but of
course this isn’t always the case.
The corollary question is whether a partial ERP

implementation can bridge the all or nothing gap.

The ERP Schedule Monster
The Larger the project, the longer it takes using a

traditional a ERP implementation approach. Any ERP
implementation that takes more than three years to
deploy is high risk by nature.

Section 2:
Semantech Inc.
ERP Solutions
ERP System Integration
• Semantech Inc. is a Systems Integrator (SI). Our

company is not solely dedicated to deploying ERP
software. We support the entire IT enterprise. We
engineer ERP solutions for the enterprise.
• Semantech Inc. also provides integration oversight or

IV &V [Independent Verification & Validation]. For
government clients, this means we can support either
the PMO or provide contract SI support. In some
cases, Integration responsibility is shared between the
program office and contract SI providers.
• Our ERP methodology is based upon a rapid capability

deployment paradigm.
The Need for Speed
• The key underlying premise behind our ERP solutions
is that delayed or protracted deployments are
inherently risky – because:
1. The projects become disconnected from the
underlying technology. Each new product
release adds integration complexity.
2. Delayed capability deployments do not allow for
course correction in time.
3. Longer projects are more likely to lose sight of
the integrated whole – in other words, they focus
on the modules w/o properly assessing
enterprise-wide solution coherence.
Agile is not Big Bang
• “Big Bang” is a description of projects which attempt to

deploy the entire capability uniformly, all at once. Such
projects may or may not represent a more rapid project
approach, but it does not represent “Agile.”
• Agile ERP represents an entirely new methodological

approach – one that combines aspects of several other
solution approaches:
• Incremental Deployment (spirals)
• Agile “Sprints”
• Solution Maturity Processes
• Agile ERP takes the best of all available techniques to

allow for holistic deployment in increments…
Our ERP Solution Framework
The Semantech Inc. ERP Solution is divided into three

capability categories, they are:
• IV&V ERP Oversight
• Holistic ERP Implementation
• ERP Project Recovery
In each of these ERP capability categories we provide the

following critical services:
• Rapid & Continuous Assessments

• Lifecycle Management
• Enterprise Integration
• Capability Assurance
IV&V Oversight
• In many ERP projects, Independent Oversight is

necessary to ensure that all participants are properly
aligned and that the project is functioning according to
expectations.
• Our oversight solutions involve situations where

Integration responsibility is shared or where one party
or the other is a designated integrator.
• The Semantic Inc. ERP IV&V solution provides an

honest broker for both business and technical issues.
• Our IV&V approach is scalable to any sized solution

and can be deployed at any point in the ERP lifecycle.

IV&V Supports the PMO
The Enterprise Program Management Office (PMO)

generally manages ERP projects – Semantech’s IV&V
solution can help coordinate ERP & Legacy concerns.

Holistic ERP Implementation
• For an ERP project to succeed, all the necessary

considerations must be addressed and reconciled.
• The Semantech Inc. Holistic ERP Implementation

solution takes a wider view than most traditional ERP
solutions, because we know that addressing critical
issues as an after-thought adds risk.
• Holistic ERP Implementation includes:

1. Process Reconciliation
2. Data Reconciliation
3. Architecture Alignment
4. Incremental, Holistic Capability Deployment
5. Legacy Transition & Reconciliation
ERP Project Recovery
• Unfortunately, there are many ERP projects that run

into problems; either during implementation or after
deployment.
• For these troubled projects, there may still be

opportunities for course correction. The Semantic Inc.
ERP Project Recovery solution includes the following
services:
1. Damage Assessment
2. Correction Road-mapping
3. Data Correction
4. Process Correction
5. Integration – Hybrid Solutions
Our ERP Methodology
• ERP project teams don’t always fully exploit the
resources available. A diversified team can however,
cover multiple related objectives at the same time.
• The Semantech Inc. methodology takes advantage of
Federated Project Teams so that ERP can be
deployed as integrated increments.
• Incremental Integration allows for continuous
assessments of project health much earlier than
traditional module based release approaches do.
• Process, Data and System Reconciliation requires
special attention and non-ERP technology to conduct –
our approach standardizes this…
Semantech ERP Methodology

ERP Coordination is Key
One of the most popular methodologies for Agile

application development is SCRUM. While this wasn’t
designed for enterprise integration it does emphasize
close coordination and collaboration on near-term goals.
We employ multiple Agile teams that work in unison…

ERP Lifecycle Methodology
Governance is a Lifecycle of Lifecycles –

data and process make it truly traceable.
In a global enterprise, even with ERP
solutions it becomes more complex. Our
solution manages complexity…
ERP Integration Methodology
Our ERP Integration Methodology takes the

entire spectrum of enterprise of processes and
systems into consideration. It also provides a
model for all enterprise integration that will occur
after deployment…

ERP Stakeholder Methodology
Successful ERP implementations are dependent

upon successful management of stakeholders.
Our ERP methodology integrates stakeholder
management into our implementation and
lifecycle management approaches.

Semantech ERP Roadmaps
Roadmaps are similar

to Blueprints with one
important distinction –
Our Roadmaps evolve
throughout the
implementation
lifecycle and
encompass the entire
deployment – not
merely one ERP
module at a time…

Section 2:
What Makes us
Different…
Thought Leadership
• Semantech Inc. has developed a number of

cutting-edge IT practices and services including
Semantic Systems Integration, Architecture Fusion
and Intelligent Healthcare.
• This thought Leadership is grounded firmly in

problem-resolution; in other words each innovation
is created specifically to address a long-standing IT
challenge.
• Our ability to think on our feet is also applied at the

engagement level – this gives us a unique level of
flexibility which in turn reduces project risk.
ERP Project Agility
• Semantech Inc. is a small business – small businesses
are motivated to succeed and can respond faster to
change than larger businesses tend to. A small
business can manage a team including large
businesses.
• Our ERP solution is entirely based upon placing the
ERP project within a clearly defined rapid “time-box.”
This applies to any sized ERP project (and the duration
is dependent on size). But the component elements of
all sized projects are the same.
• The Semantech Inc. solution is an open, collaborative
and coordinated solution – this integrated approach is
by nature Agile…
Federal Solutions Experience
• Semantech Inc. brings nearly 15 years of

experience of complex Federal enterprise IT
transformation to the table.
• We understand Federal Government mandates,

expectations and formal guidance, for Information
Assurance and Lifecycle Management as well as
for specific agencies such as DoD.
• Semantech Inc. understands Federal acquisition

processes and how to serve in the various roles
that are necessary to support an ERP project.

Conclusion
• The reason we created our ERP solution was to
significantly improve the ratio of ERP
implementation success.
• This goal required us to rethink and then

reconfigure traditional ERP implementation
approaches and related technical solutions.
• We are offering an evolutionary improvement to

ERP actualization; one that maximizes the best
techniques, practices and technologies available.
Semantech Inc. is dedicated first and foremost to
our client’s success…
Semantech Inc. Contact Information
Thank You…
Call 937-554-4673
Or contact slahanas@semantech-inc.com
For more Information

Check us out at http://www.semantech-inc.com

Semantech Inc. ERP Solutions

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ERP Solutions

Agile Enterprise Resource

Copyright 2010, All Rights Reserved – Semantech Inc.

• This presentation introduces a unique approach to ERP

• We will explain the challenges and misconceptions

• We’ll describe the Semantech Inc. alternative to

• Presentation Theme: “ERP is Enterprise

Copyright 2010, All Rights Reserved – Semantech Inc. 2

• Semantech Inc. is a small, woman-owned business

• Our charter is to provide enterprise-level solutions and

• Our underlying premise is founded upon the

Copyright 2010, All Rights Reserved – Semantech Inc. 3

At Semantech Inc., Innovation is not a mandate, it’s our passion…

Copyright 2010, All Rights Reserved – Semantech Inc. 4

An End-State ERP infrastructure – but does this

Copyright 2010, All Rights Reserved – Semantech Inc. 5

• ERP projects have some of the highest rates of failure

• Many studies have placed the ERP Project failure

• So, why do they Fail?

Copyright 2010, All Rights Reserved – Semantech Inc. 7

• The larger the enterprise, the larger the challenge for

ERP solutions come in modules. The

Copyright 2010, All Rights Reserved – Semantech Inc. 9

• Any ERP solution will need to take into account the

• In many cases, customizations or integration must

DoD ERP projects are even more

Copyright 2010, All Rights Reserved – Semantech Inc. 11

• ERP systems are transactional in nature, so other data

• Data integrity and reconciliation tends to be one of the

DoD ERP solutions do not occur out of larger

Copyright 2010, All Rights Reserved – Semantech Inc. 13

• Legacy Transition is the most difficult part of any ERP

• It is extremely dangerous to automatically assume that

The biggest challenge related to ERP is the Big

The reason it is a challenge is because often times the

The corollary question is whether a partial ERP

Copyright 2010, All Rights Reserved – Semantech Inc. 15

The Larger the project, the longer it takes using a

Copyright 2010, All Rights Reserved – Semantech Inc. 16

• Semantech Inc. is a Systems Integrator (SI). Our

• Semantech Inc. also provides integration oversight or

• Our ERP methodology is based upon a rapid capability

• “Big Bang” is a description of projects which attempt to

• Agile ERP represents an entirely new methodological

• Agile ERP takes the best of all available techniques to

The Semantech Inc. ERP Solution is divided into three

In each of these ERP capability categories we provide the

• Rapid & Continuous Assessments

• In many ERP projects, Independent Oversight is

• Our oversight solutions involve situations where

• The Semantic Inc. ERP IV&V solution provides an

• Our IV&V approach is scalable to any sized solution

Copyright 2010, All Rights Reserved – Semantech Inc. 22

The Enterprise Program Management Office (PMO)

Copyright 2010, All Rights Reserved – Semantech Inc. 23

• For an ERP project to succeed, all the necessary

• The Semantech Inc. Holistic ERP Implementation

• Holistic ERP Implementation includes:

• Unfortunately, there are many ERP projects that run

• For these troubled projects, there may still be

Copyright 2010, All Rights Reserved – Semantech Inc. 27

One of the most popular methodologies for Agile

Copyright 2010, All Rights Reserved – Semantech Inc. 28

Governance is a Lifecycle of Lifecycles –