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Note to reader – upcoming blog content will utilize a Human Resource specific ERP implementation but same model in any other scenario. As we drill down into the justification of doing an ERP implementation, you will discover that this echoes my observation that this is a company-wide initiative and needs to be justified, communicated, and agreed to be all areas of the organization. This blog will focus on the:
Consolidation of Information Technology (IT) Systems
Cost Reduction
Business Process Reengineering
New Application Technology
Bad Decision Making
Consolidation of Information Technology (IT) Systems Typically, the consolidation of a number of disparaging systems within an organization’s IT landscape is the main catalyst of why companies begin to examine the selection and implementation of a new ERP system. This is what I lovingly refer to as the “Spaghetti and Meatball” system slide. You all have seen it. The IT PowerPoint slide showing all the various systems/applications (meatballs) and bunches of lines (spaghetti) that show how all the data flows (or unfortunately doesn’t) between all the various applications. 21st Century IT departments are saddled with these types of environments because each business function goes off on a tangent looking for the best “tool” to solve one business problem as opposed to focusing on a true applications strategy . Don’t believe me…do you have one or multiple payroll systems, one or multiple compensation systems, one or multiple performance management systems…see my point. If I could go back in time, I would eliminate the term “best of breed” in the late 90’s early 2000’s from the technology conversation.. Multiple software packages; different databases; different application languages; different security protocols; multiple complex integrations; no standardized report or real time decisions making; combined with numerous employees within IT and the Business to operate, maintain and support all these applications and interfaces are what organizations are dealing with today – crazy right! Isn’t it obvious - we need a new ERP system. 😊 A new ERP implementation needs to address this situation in a way that is clear, concise, and simple to understand for any audience, especially the Board of Directors and the rest of the Executive Leadership in your organization. This is where the adage – “A picture paints a thousand words” is appropriate. Information Technology infrastructure can be overwhelming to most individuals so making it simple is critical. For example, changing your IT landscape from Slide 1 to Slide 2 below is simple for anyone in your company to understand and is exactly the way to engage in this ERP project.
Slide 1 – Current State - IT Landscape
Slide 2 – Future - IT Landscape
IT is at the front of the bus in this aspect of the recommendation – but remember – they don’t own the bus, the entire company does - and you are driving. But, they definitely need to navigate this stretch of road for you to ensure that you don’t drive into the ditch when it comes to delivering a technological model that supports the organization’s ERP goals for at least the next 10 years. Once the CIO and the rest of the IT group are aligned and on board the bus you have a critical ally in achieving the overall success of the initiative. Having done this for our clients on numerous occasions, we are accustomed to helping you ensure short- and long-term success of the ERP project – contact us if you need our help navigating this part of the journey. Read the next blog to learn about how Cost Reduction is a strong justification for undertaking an ERP implementation – see you there!!!
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