Accelerating value capture of SAP enterprise resource planning (ERP) system : governance model and process

Abstract

Raytheon produces a diverse range of defense products using a wide range of business systems and tools that are not currently integrated. To achieve the corporate vision of "one company", in 2005, Raytheon began to deploy its SAP enterprise resource planning (ERP) system, called "PRISM", focused on planning, sourcing, manufacturing, and delivery processes. After a few single-site PRISM deployments, in 2009, Raytheon launched its biggest deployment yet, to 7,000 users and two business units in California and Texas. This thesis explores effective governance models and post-deployment governance processes necessary to mitigate the anticipated performance dip and accelerate return on investment (ROI) of the SAP system. The desired governance model for multi-business unit SAP ERP system includes comprehensive representation of stakeholders from business functional areas, information technology (IT) areas, user support groups, and SAP system experts. The governance structure consists of integration points among users, system experts, process owners, management, and corporate leadership team to ensure development of corporate system and solutions to address business unit needs. The governance process involves reviewing change requests, assessing changes needed, and deciding on final resolution. The governance structure and its linkages among different groups facilitate the process by involving the stakeholders with the appropriate knowledge and experience to contribute to decision making. The result is a governance structure capable of making just-in-time decisions to implement the "one-company" vision.