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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.
The third aspect in the 5 Key ERP Implementation justification in this blog will focus on:
Consolidation of Information Technology (IT) Systems
Cost Reduction
Business Process Reengineering
New Application Technology
Bad Decisions Making
Business Process Reengineering
In the Consolidation of Information Technology blog I discussed how the consolidation and streamlining of applications helps the organization to justify the implementation of a new ERP system. Business Process Reengineering is where each functional area in your business can be the ultimate key to success. But don’t kid yourself this isn’t as simple as saying things like:
“We really should get a new computer system so that we can hire people faster.”
“If we had a new computer system – performance reviews would be much easier for everyone.”
“Wow wouldn’t it be great if we had a computer system that could give us real time reporting?”
Statements like these aren’t requirements – they are naval gazing wishes that people make when they haven’t defined their organizational goals, business structures, process models and done an extensive analysis with all departments to get the complete set of requirements.
Organizations often focus on functions and features of the various applications they are interested in – rather than the Business Process Reengineering modifications and improvements that will drive true organizational change and cost savings that must result when implementing a new system.
Before you define transactional business processes - Business and IT leaders should meet to clearly define and align on major themes like:
Employee User Experience and Enablement
Manager Direct Access and Real-Time Decision Making
Employee Attraction and Retention via Technology
Customer Centric Tools and Information
Mobility Utilization and Philosophy
(We’ll talk about these aspects and may others in greater detail future blogs)
These overarching themes become the framework that anchor all the detailed requirements within each of the functional areas to ensure that you are making the best ERP selection for your organization and ultimately driving the cost reduction and value for your organization.
Business Process Improvements aren’t necessarily about changing current state transactional processes. They are really the “What if…” processes change that companies often don’t even dream about doing because of the limitations of their current IT infrastructure.
Clients don’t understand that well before they evaluate or select their new ERP system – extensive work in how they want to operate must be defined, articulated, and communicated to all departmental groups in the organization (especially Operations). Consultants lovingly call this requirement gathering and they make a lot of money working with clients to articulate things that can be defined by asking a simple question – “What if?”
“What if …we could have employees enter expenses directly from cell phones?”
“What if …applicants could apply on the same application as our back-office system?”
“What if …Finance and HR information could be consolidated in one system?”
“What if …we could streamline the approval levels in our Financial Delegation of Authority / Span of Control?”
What if...you get the idea!!!
This is the hard work that needs to be done – not during the project (like some people think) – but as part of the justification process and is a critical aspect of the selection and implementation of an ERP project in the first place.
Many organizations think that by getting a new system that it will “automagically” (JTism 😊) “fix” all their business processes and their company will operate better. Think about this way – if we go back to my analogy of ERP systems being a “House" – it would be like saying to a Realtor – “Find me a house that I can live in” – no credible Realtor would invest much time with you unless you could answer numerous questions (which are what we call in the ERP world the business process requirements).
How much money are you planning to spend?
How many square feet, number of bedrooms, number of bathrooms – full and half?
Where do you want to live?
Do you need to live near public transit?
Do you want schools nearby?
Do you care about the crime rate in your community?
Etc. etc. etc.
I’m not a Realtor but I know that the best ones have numerous questions and a process that they follow with each client to ensure that they find the correct house – but even with all that information – no one has ever bought a house without seeing the requirements in physical form – that is why you view houses (sometimes many houses) before you make your final selection.
Ultimately, if you haven’t defined exactly what you want from your ERP solution in the greatest level of detail what do you intend to say when you are standing in front of the Board of Directors and they ask you.
“How do you know we are selecting the best solution for the company? “
Contact us and we’ll ensure that you have solid answers to this or any other questions from your Board of Directors as they make that final decision to look for a “House”…I mean ERP system. 😊
Up next, we will discuss how new technology isn’t just cool and fun but truly a justification for your ERP implementation – see you there!!!
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