Controlling a Vital Customer Facing Technology Investment

Issue

This European market leader wanted to increase the proportion of customer orders fulfilled within its tier 1 service commitment target. This objective provided for new opportunities to provide more of the customers’ requirement for product as well as opportunities to rationalise stock holdings.

Engagement

A substantial technology investment was required to support the performance objective. An investment in new systems that would consolidate millions of part numbers from multiple ERPs, optimise stock levels and support electronic ordering.

A leading systems integrator was contracted to supply and install the software. A small team from Morgan Hill was contracted to provide programme management services over the SI and to help manage the integration of nine European systems into the new Master Data Management system.

Using existing Morgan Hill processes and documentation a fully functional programme management office was rapidly established. This function controlled and co-ordinated the activities of multiple mixed teams of business and technical professionals across Europe. Together these teams normalised, cleaned and loaded millions of stock part numbers into the new system.

In addition to providing the programme management services, Morgan Hill delivered its performance management model into the existing corporate governance processes controlling key technology investments. Using the Morgan Hill Financial Model the client is able to actively manage the business value planned to arise from these investments. Regular, quarterly executive output from the model clearly shows where a return is occurring, how significant it is and what the risks are.

Outcome

The improved customer service targets are being met. The amount of capital tied up in stock is falling and a single view of stock items available around the group is being delivered. The Morgan Hill Financial Model is now firmly embedded as the vehicle for delivering technology investment governance across the group. As a result the company is delivering measurably more return from its project investments whilst keeping the size of the investment budget constant over the last two years.