Managing the Change
Generally the only person who enjoys a change is a wet baby. Most others want things to remain the same, but get better.
Ask the CIO what was the hardest part of implementing the ERP solution, and the response will in all likelihood be “Getting users to commit.”
Jim Collins, author of four international bestselling business books notes: “We tend to think that decisions are very much about ‘what.’ But when I look at my research notes or at interview transcripts from the executives we’ve interviewed, one theme that comes through is that their greatest decisions were not ‘what’ but ‘who’. They were people decisions.”
Before Selecting a System
In the early 1980s “experts” on Japanese management were isolating distinctive practices that seemed to account for Japan’s remarkable economic success. The ‘Ringiseido’ decision-making practice was one of these. It offers an opportunity for equals to participate in the decisions that the executives will have to take. The purpose was to adhere to the Japanese cultural desire of harmony among people.
Taking Ownership of Your ROI
In a previous blog I referred to the unpredictability of measuring the ROI of your ERP investment. One key issue relating to this is the understanding of the core functions of your business now and in the future – before you consider an ERP system, take ownership of your Return on Investment (ROI).
There is a lot of debate about who coined the phrase, “form must follow function” (or words to that effect). It is commonly attributed to the American architect, Louis Sullivan, for whom it was the rule that “shall permit of no exception”. Sullivan was talking about aesthetics, but he might as well have been talking about ERP projects. When considering whether to install an ERP system the same rule applies, and similarly “permits no exception.”
In a previous blog post, I mentioned that having an ERP certification does not necessarily mean that someone has the required experience or soft skills to be able to perform a job effectively. In addition, I mentioned that the purpose of the certification exam is most often to assess an individual’s ability to answer knowledge-based questions, and does not extend to assessing their ability to use the ERP system to solve real world problems. This brings me to the difference between assessing for knowledge and assessing for competency.
Fifteen years ago, it would have been tough to believe a little device no bigger than your palm would have enough computer power to not only render high-definition videos, but also be able to secure sensitive data with the swipe of a finger and provide access to your corporate network.
Oh, and you would also be able to make phone calls with it.
Today smartphones and mobile devices have evolved so quickly that they are now little offices that you can access anytime, anywhere. In fact, mobility is an area I am personally very interested in because I believe it’s changing society rapidly and offers many business benefits today and into the future.
What do ERP project really cost? A well-known study in 2002 by the Meta Group (since acquired by Gartner) is probably now too old to be a really useful benchmark. A slightly later study, in 2007, by Aberdeen Group made the ‘remarkable’ finding that costs go up as the number of users go up.
SYSPRO Canada has recently compiled a report covering manufacturing innovation in Atlantic Canada and in compiling this report I got to thinking about the relationships we have built over the years with our channel partners and our customers, and our continued success in retaining these customers. In this current economic environment, and more specifically in the fast-paced, constantly changing business software market there aren’t too many businesses that can proudly point to client retention rates of 98%.
As an ERP professional, there are two questions that I am asked quite often by both prospective and current customers. I already addressed the first question, ‘How do I know my business needs ERP’, in an earlier blog and would like to focus on the second question, ‘How do I get the most out of my ERP system?’ Simply put, there are several ways to optimize your ERP solution, but these three tips can help improve the entire process:
