As a Project Governance and /or Manager Specialist I build a deep understanding of customers needs. Below is a simple predictive IT costing matrix we used at a very large client for a 40 million dollar project. The object was to quantify large RFPs (Request for Bid) from consulting firms. The end result was to finalize which ERP and development components were absolutely required over the next 2 years to optimize the clients business. Then we finalized the winning bid. This same matrix can be used after a Gap analysis as well.
The tasks listed were much more numerous and detailed at the client, I have condensed the table in this example.
Here are the steps:
- List all the Business Processes, Tasks or Gaps.
- Gather the Client executives and SME`s in a workshop to agree on the rankings.
- Work with a Financial Analysis to quantify which processes, tasks or gaps absolutely require an IT solution.
- Match the IT solution with the highest ranking tasks and final financial analysis.
- Save millions of dollars (I am not kidding).
Note: That simple questions like “How many people does it affect? “ can have a huge effect on the end decision.
| Task / Process Gap | Importance of Task (rank 1-5)
|
Magnitude (Ex: how many people does it affect)
|
Implementation cost (rank 1-5)
|
Final Financial Analysis (to be done separately)
|
| Quality Management | 4 | 10 | 2 | $ |
| Warehouse Management | 3 | 20 | 2 | $ |
| Procurement | 4 | 5 | 3 | $$ |
| Production Planning | 3 | 8 | 4 | $$ |
| Forecasting | 5 | 2 | 4 | $ |
| Shipping | 2 | 10 | 2 | $ |
| Sales | 5 | 5 | 5 | $$$ |
| Demand Planning | 3 | 4 | 3 | $$ |
| MRP | 3 | 2 | 4 | $$ |
| S&OP | 5 | 5 | 4 | $$$ |
Terry Vermeylen is a Senior Project Manager, Business Optimization expert, and SAP and Supply Chain specialist that has advised the US Navy, spoken at conferences, lost his soul a few times, and inspired teams to the point that they want to hug him.