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Lessons Learned
Cooperative Resources International Enterprise System Modernization 11-7-13 Larry Romuald CRI Treasurer Agenda • • • • • Overview of CRI Reasons for System Modernization Drivers of Future Systems Process and Selection Lessons Learned CRI Facilities International ► Over 4 million units of semen exported in 2012 ► 60+ countries ► Many distributors are leading providers of multiple products and services in their country ► CRI has extensive relationships in all leading livestock producing countries 25 Mergers and Acquisitions Since 1993 Noba, Inc. LABC Atlantic Breeders Cooperative Eastern AI Hawkeye West Dakota Sire Service Alta Beef Elrosa Dairy Equipment South Dakota De Laval S.W. Minn. De Laval Distributorship Central Livestock Association Zumbrota Livestock Auction Market North West Labs Sioux City Direct Hogs Brazil Marketing Belmond Soil Lab Dairyland Milk Lab Central Wisconsin DHIA Iowa County DHIA Polk-Burnett DHIA Jefferson County DHIA Indianhead Milk Testing Harris Labs Agri-Check Labs LGI Labs Business Growth 1994 - 2012 “Stony Hill” Bull housing and home of GENESIS Shawano, WI 189 bulls Genex Headquarters Shawano, Wisconsin 70 bulls CRI Headquarters Shawano, Wisconsin Bull & heifer housing Tiffin, Ohio 69 bulls Bull housing Ithaca, New York 293 bulls Size and Scope 9 Joint Ventures 60+ Countries 3M Units Development 4,414 Members 694,000 Cows 5.2M Milk Samples 38,800 Feed Samples 774,000 Soil Samples 42,500 Water Tests Finance Public Relations Information Technologies 16,000 Members Farm Systems $8.6M Sales 60,000 Herds 1.9M Matings Central Livestock 4.5M Units 363,091 Cattle 178,589 Hogs 83,227 Sheep 624,907 Total Legacy Business Software • Accounting Systems Logic Dating Back to 1950’s • 1992 Most Recent Upgrade – JD Edwards Package Reasons to Modernize Business Software • Business Growth 1993 - 34 million Revenue 2013 - 165 million Revenue Reasons to Modernize Business Software • Inability to Consolidate Internationally – Subsidiary Financials • Brazil, Mexico & South Africa – Semen Inventory Reasons to Modernize Business Software • Several Components of Business Software Are On Incompatible Platforms – Quick Books – Red Wing – Custom Processing – Custom Developed Software Reasons to Modernize Business Software • Segmented Systems As A Result of Multiple Mergers and Acquisitions 20 Customer Data Bases Not Linked or Talking to Each Other Reasons to Modernize Business Software • Consolidation at Member Level in Dairy Industry. CRI Systems Lacked Scalability, Flexibility and Communicability Reasons to Modernize Business Software • Domestic Marketing Changes – Inability to Manage and Serve Our National Accounts – Large Members and Customers – Band-Aids and Rubber Bands Used to Hold These Systems Together “Pieced and Patched” Drivers of Future Systems • Mobility – Field Marketing 400 Remote Devices Drivers of Future Systems – CIO Survey • 40% Mobile Technologies Top Priority • 70% to Provide Smart Phones for Employees • 2014 Business Spending on Mobile Devices Will Overtake Spending on Fixed Devices • 57% Companies Planned to Provide Tablets for Employees Drivers of Future Systems • Data and it’s Storage – CRM Field Marketing – Genetic Research Data – Customer Data Bases – DHI Production Data – Agronomy – CRI Stores 180 terabytes of Data • 46 Million Songs Drivers of Future Systems • Web Applications Drive Revenue • “APP” Development CRI Business Software Process and Selection • Core Development Group – Finance and Information Technology CRI Business Software Process and Selection • Developed RFP Document All Business Users Interviewed For Input – RFP Submitted to 6 Companies – Three Responded • Microsoft • Oracle • SAP CRI Business Software Process and Selection • 3 Year Project • Final Implementation 4/1/14 Lessons Learned • Underestimated the Amount of Change Required By Organization to Put in Place a “State of the Art” Business Software System Lessons Learned • If Possible Minimize Process Changes by Adoption of Best Practices Lessons Learned • Like going from a Ford Pinto to a Porsche Lessons Learned • Don’t Let the Budget Drive the Timeline Be Realistic in $ and Time Lessons Learned • These Systems Are Not Cheap Lessons Learned • Ensure Adequate Human Resources Are Available For Project Lessons Learned • Training and Communications Critical to Success of Project Lessons Learned • Listen to Those Who Have Done It Lessons Learned • Develop a Plan That Rolls Out The Project in Phases Lessons Learned • Restructure Your Internal IT Resources to Capture the Benefit of Your Investment Hard Work But Benefits Will Justify the Resources Expanded to Make Operational Thank you!
