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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 fourth 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
New Application Technology
The “Latest and Greatest Technology” philosophy is also an approach (or more realistically an aspect) to justify why your company should select and implement a new ERP solution. Promises of a new, cool, and “easy to use” software often clouds (if not outright puts blinders on) some companies thought processes when they think about an ERP application. In today’s “gotta have the latest and greatest technology” world that we live in almost everyone is impacted to some degree.
Come on, admit it you do it too - How’s that new cell phone that you stood in line to get? Do you like your new laptop? – too bad the other one broke after you accidentally spilled coffee on the keyboard. I think you get my point – we all love new, exciting, and leading edge stuff (especially when we aren’t paying for it) but don’t let that be the most important reason to justify doing this ERP implementation – but it is a factor.
Now I am going to tell you a secret – Shhhh – don’t tell anyone but most ERP applications are not really that different from a process or transactional perspective - because businesses are that different from a process or transactional perspective.
There are obvious differences in ERP applications “look and feel” that becomes a factor based on personal preference. Hell, it’s not like there are new processes or transactions in the Finance, Human Resources, Supply Chain, or Customer functional areas over the past 30 years. It’s now about how easily business users can configure the applications to the self-imposed rules that organizations have created.
To be blunt there is nothing new here and the opposite has happened with the Software as a Service (SaaS) Cloud model for systems. We have dumbed applications down so much that now technically things can’t be created to support unique business requirements. The challenge now is how implementation consultants (or as I call them technicians – more to come on implementation consultants in a future blog) get “special” clients to knock off the square edges of their “unique processes” to fit in the SaaS application’s standard round holes. I mean how many ways can you process a pay change request, input a new hire, or complete a performance review.
ERP applications are just computers; they store information – they don’t think – and if you have an ERP Sales Representative or Implementation Consultant tell you that this application is so “smart” feel free to use this response – as I did almost 25 years ago. I digress but it’s a fun story to prove my point – enjoy.
A while back in my career, I was the Human Resource Business Lead for my company’s ERP project (maybe just like you). Anyway, I am sitting in a very early ERP design meeting with about 30 of the project team and implementation consultants and we are discussing how they would configure the application to support the supply chain process “based on our requirements” and “make everything in that process incredibly easier for the Project Managers” at my firm.
The highly experienced Senior Consultant and supply chain expert stood at the front of the room and proclaimed – “we will configure the system in a way that it will automatically tell your Project Manager when the specific part should be ordered, when it has arrived in your receiving area, it will then tell them where this part should be used at the job site, and then it will tell the Project Manager when to release the part to be sent to the technician to do the work”.
The other businesspeople on the project team thought that this was wonderful – when they asked for my feedback I said – “Well if your system can do all that – that’s great – I will make a recommendation to get rid of all the Project Managers and replace them with one or two Project Coordinators – the company will say tons of money – right?
At this point the Senior Consultant looked shocked and stammered – “well, it might not work exactly like that – but the information will be available in one place for the Project manager to make those types of decisions.”
Moral of the story – New, Cool, “Easy to Use” – ERP systems will never replace people – but they will provide information for easier decision-making
If the New Application Technology aspects of your justification or selection process are overwhelming you and your team – feel free to contact us – we’re here to help.
Up next, we will expand on the Decision-making justification reason that we have started to touch on here – won’t you join me!!!
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