How to Ensure Your Next EHS & Sustainability Software Platform Will

How to Ensure Your Next EHS &
Sustainability Software Platform Will
Achieve Your Business Objectives
Implementation Best Practice Begins with Effective Planning
Mark Pratorius
Client Services Manager
EHS & Sustainability Solutions
March 2, 2011
Copyright © 2010 IHS Inc. All Rights Reserved.
10 Common Beliefs
The total cost of ownership is less for “buy” than it is for “build”
2
2.
A large customer base drives innovation and stability in commercial software
3. Complete solutions are about people, process, technology, and data
4. Solutions require a long term view
5
5.
Centralizing data will increase data integrity
6. Value must be recognized early in the implementation process
7. Value must continue to be shown throughout project and well into system use
8
8.
Commercial software should not be customized unless absolutely necessary
9. Level of influence is greatest at the beginning of the project, cost to change is
greatest toward the end – early project planning is essential
10. Dedicating resources to the implementation project is critical to success
10
1.
Copyright © 2010 IHS Inc. All Rights Reserved.
EHS & Sustainability Covers Many Topics
Enterprise Sustainability Management
Metrics & Dashboards
Compliance Status &
Evaluation
Integration &
Interoperability
Site & Enterprise Level
Reporting
Configurable &
Automated Workflows
Operational Excellence
Environmental
Health & Safety
Risk
Management
Product
Stewardship
GHG & Energy
Corporate
Responsibility
Air Emissions
Behavioral Safety
Incident Tracking
(M)SDS Authoring
Emissions Inventories
Sustainability Reporting
Fugitive Emissions
Industrial Hygiene
Automated Notifications
Labels & Packaging
Compliance &
Verification
Project Tracking
Refrigerant Inventory
Occupational Medicine
Emergency Operations
Product Compliance
Water Usage &
Discharge
(M)SDS
Hazardous Waste
Chemical Approval
Chemical Inventory
Process Safety
Regulatory Permits &
Citation Linkage
Training
Cap & Trade
Abatement & Offset
Projects
Assessments & Audits
Materials & Supply Chain
Process Hazard Analysis
Certifications &
Declarations
Corrective Actions
Product Evaluation &
Classification
Internal & External
Reporting
Energy Usage &
Reduction
Strategic Planning
Key Performance
Indicators
Footprinting &
Reductions
Environmentally
Preferred Purchasing
Shared Value Creation
Foundational Content
People
Assets &
Equipment
Sites & Locations
Chemical &
Material Data
Geospatial
Information
Regulatory
Citations
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Regulatory Rules
& Templates
Policies &
Procedures
Today’s EHS Business Challenge
• Across every business sector, organizations face a rapidly
growing
i regulatory
l
b
burden,
d
plus
l iincreased
dd
demand
d ffor
corporate responsibility reporting.
• Regulatory
R
l t
complexity
l it and
d risks
i k are d
driving
i i companies
i tto
support compliance management programs with enterpriseg
technology.
gy
level information management
• Without a platform approach to managing your EHS data,
you risk making repeat investments in technology that fall
short of meeting the demands of your business.
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What’s Your Pain?
• Growing regulatory/sustainability reporting burden
• Cost of operating multiple disparate EHS management systems
• Inefficient manual compliance processes
• Lack of system interoperability
• Risks, costs associated with complex financial-based regulatory schemes
• Increased demand for corporate responsibility reporting
• Increased
I
d regulatory
l t
complexity
l it
• Resource reduction
• Increased transparency of reporting
• Managing assets across large organizations
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Where Are You in The Journey?
C
Collaboration
ll b
ti
Optimize
Process
Review
Performance
Share Knowledge &
Prioritize Actions
Engage the Work
Force
Standard Process
& Consolidate
Systems
S
Performance
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Experts estimate that more than 65% of
enterprise software implementations fail.
Why?
“The first stumbling block for many failed implementations is a severe
misalignment
g
between software functionality
y and business needs.”
Eric Kimberling,
g Welcome to the Jungle:
g
Lessons from ERP Software Implementation Failures
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Expertise is Needed to Create The Plan
Software
Knowledge
EHS
Business
Expertise
Project
P
j t
Management
Practices
IT
Knowledge
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Copyright © 2010 IHS Inc. All Rights Reserved.
Emerging Best Practice: Value Assessments
Successful software deployment begins with a preimplementation value assessment.
This process entails working with a trusted advisor to develop
a comprehensive plan that:
• Outlines your business goals, desired outcomes, processes and
resources and aligns them with standards and regulations that govern
your operations
operations.
• Evaluates all of the resources that will be required to implement a
solution.
• Helps you achieve your business goals by managing change within
your operations.
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How to Move Forward
7.
Articulate
Business
Case
1.
Define
Outcome
6.Create
6
Create
Deployment
& Support
Plan
2. Bound
Scope
3. Identify
Key Inputs,
Outputs, &
Resources
5. Measure
Value
4. Assess
Process &
Enterprise
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Assessment Methods
• Subject Matter Experts
(SMEs) are asked to
describe their workflows,
needs, and requirements
for critical functional
areas to uncover points
of potential improvement.
SME
Interviews
• These discussions are
captured and analyzed
after the assessment.
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Typical Assessment Questions
• Who are the key stakeholders involved in this business function?
• What systems store primary data needed for this business function?
• What type
t pe of data are needed for this business
b siness ffunction?
nction?
• How frequently are the data needed?
• Who uses data from the business function?
• What are the most significant business drivers for this business function?
• What type of performance metrics are currently used within your organization?
• What regulations must you comply with for this business function?
• List the most significant output you need from the system?
• What equations, methods, or techniques are used to analyze the data for this business
function?
• Have other systems been implemented in the past to improve this business function?
• Did it go well? Why or why not?
• What lessons learned are available?
• What are the three most important requirements to address?
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Work Flow Documentation
13
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Define Requirements To Enable Clear
Success Criteria Throughout
g
Project
j
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Process Maturity and Enterprise Capabilities
Using Industry experience and data, evaluate the maturity and
capabilities of your organization….
Process Maturity*
Enterprise Capabilities*
P1 P2 P3 P4
P1 P2 P3 P4
Design
Leadership
Performers
Culture
Owner
Expertise
Infrastructure
Governance
Metrics
*Based on “The Process Audit” by Michael Hammer, HBR April 2007
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Defining The Value
Type
Description
Value
Cost Reduction
Reduced loss
• Focused behavior minimizes loss
C t Reduction
Cost
R d ti
Retirement of disparate
systems
• IT People needed to maintain systems are reduced
• Maintenance
M i t
& supportt fees
f
to
t vendor
d are reduced
d
d
• Training required is reduced
Cost Avoidance
Technology enabled
workflow
Cost Avoidance
Corporate solution
Cost & Risk Reduction
Reduced violations
Risk Reduction
Compliance confidence
Risk Reduction
Libraries of best
practices
•Best practices shared amongst businesses
Risk Reduction
Timely data enables
decisions
•Decisions that impact business can be made more quickly
•Technology rather than headcount is leveraged to
meet requirements.
Reduced business time spent contacting vendors or
•Reduced
selecting solutions
•Reduced IT time spent evaluating technology
•Reduced fines
•Improved
p
p
public image
g
•Reduced insurance
• Auditable system that allows documentation of
compliance
•Reduced liabilities, less risk reserves
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Desired Business Outcome: Cost Savings
• Cost Savings Metrics
• Eliminated
Eli i t d over $2 million
illi in
i redundant
d d t reporting
ti
systems
• EHS reports generated in 2 hours instead of 2 days
• Mobile waste collection entry time reduced from 45
minutes to a few minutes daily per operations employee
• Saved 3 months by eliminating need to update
homegrown tool
Copyright © 2010 IHS Inc. All Rights Reserved.
Desired Business Outcome: Risk Reduction
Risk Reduction Metrics
• Complied with 526 permits across 245 governing bodies –
• 1224 rules
• 8999 citations
• Tracked 4300+ tasks
• Achieved goal of assuring > 85% completed on schedule,
• Tracked near misses
• Preserved license to operate in 200 facilities at 35
manufacturing sites
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Planning for a Software Implementation
• Do you have sufficient resources to deploy and manage your
system?
y
• Will your system have the flexibility to address your immediate
needs today, and account for your organization’s growth – and
i
increased
d regulatory
l t
d
demands?
d ?
• Most companies focus primarily on software features,
functionalityy and user interface. That’s onlyy the beginning
g
g of
the challenge.
• You need to know how to properly deploy a software solution
so your organization
i ti will
ill optimize
ti i th
the b
benefits
fit off iinformation
f
ti
management.
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Use Proven Methodology
Initiate
Design
Construct
Test
Deploy
Improve
•Develop
Requirements
•Define Solution
•Create
Business Case
•Secure
Resources
•Develop Project
Controls
•Install Software
•Solution
Training
•Design
•Configuration
Design
•Integration
Design
•Prototype / Pilot
•Data Gathering
•Configuration
•Integration
•Data Loading
•Environment
Staging
•Test Plans
•Unit Testing
•User
Acceptance
Testing
•Resolution
Planning &
Execution
•Training
•Readiness
Audit
•Go Live
•Support
•Lessons
Learned
•Project Close
•Change Control
Board
•Refresher
Training
•New User
Training
Systems
•Systems
Analysis
•User / Focus
Groups
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Plan for Correct Resources
Program Manager
•
•
•
•
Infrastructure
Manager
Readiness
Manager
Build
Deployment
Process
Configuration
Software customizations
Interfaces
Reports
• Deployment processes and
tools
• Deployment consulting
• Deployment team training
Support
Process
Release Mgmt.
•
•
•
•
Release management
Change control process
Management of change
Vendor product roadmap
(decision to migrate to
new version of s/w)
• Support processes
• Support consulting
System
Administration
• User setup and security
• 3rd party access
Training
•
•
•
•
End user training
Support training
Training logistics
Train-the-trainer
Communication
Software
Vendor
Execution
Manager
Quality
Manager
Deployment
Schedule
Operations
• Schedule development
• Schedule management
• Coordination with other
projects and
interdependencies
Business Unit
Coord.
Business Unit
Coord
Coord.
Business Unit
Coord.
Business Unit
Coord.
Business Unit
Coord.
Business Unit
Coord.
• Operations web site
• Metrics and reporting
• Safety/Op Ex
Project
Controller
Finance
• Cost management and
reporting
• Cost recovery models
BVR
Testing
• Test plan, processes, and
tools
• Testing execution
• User
U
acceptance
t
testing
t ti
• Performance and
reliability testing
• Business value realization
plan
• Sustainability plan
• Stage gate preparation
Feedback
Coordinator
• Program feedback
process (end user,
deployment, support)
• Lessons learned
• Surveys, focus groups
• Go/No-Go process and
decision
Support
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Coordination
•
•
•
•
Resource plan
Vendor mgmt
Evergreen governance
Legal
Choose the Right Deployment Approach
22
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Build a Project Plan
23
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Calculate your Anticipated Cash Flow, ROI,
and/or Pay Back Period
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Copyright © 2010 IHS Inc. All Rights Reserved.
Summary
• Savvy organizations understand that proper implementation
of an EMIS platform can help your organization improve its
environmental, health and safety (EHS), material
management, and product stewardship business program.
• Advanced software systems also have a track record of
helping companies reduce operational risks and costs,
increase
c ease e
efficiency
c e cy a
and
d de
develop
e op forward-thinking
o adt
g st
strategies
ateg es to
prevent, rather than mitigate business EHS challenges.
• Proper
p p
planning
g for this important
p
endeavor is critical to long
g
term system sustainment and optimized processes that will
drive your program success.
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Copyright © 2010 IHS Inc. All Rights Reserved.
Mark Pratorius
Client Services Manager
EHS & Sustainability Solutions
(713) 231-7650
Mark.Pratorius@ihs.com
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