Tag Archive: design

ERP Selection: Why It Has Become a Strategic Priority

April 18th, 2019

In today’s Amazonian environment, customers expect rapid delivery, over and beyond from cradle to grave, collaborative service, 24/7 accessibility and last-minute changes. Executives are realizing they must upgrade their technology infrastructure to meet and exceed these customer expectations while driving bottom line improvement.

Your ERP decision will be one of the most significant investments your company will undertake, and these projects are wrought with risk. 80% fail to achieve the expected results yet waiting “too long” can put you out of business.

Selecting an ERP System is a Strategic Priority
Because of the significant customer and bottom-line benefit and steep, unintended consequences associated with these projects, the most successful clients realize they must be a strategic priority. By no means should the decision by relegated to a technical expert or project manager. Involve your best and brightest on the team and ensure your executive team is on top of preparation, progress and the inevitable pitfalls – beginning with preparation:

  • Understand business processes: Start by understanding what occurs on a day-to-day basis. One of the top failure points is to assume that people can make the leap from current processes to what every ERP provider claims to be “best practices” on day 1 with no roadmap.
  • Gain strategic and cross-functional input – Since all systems will perform the basics well, success will boil down to what drives your strategy and supports your cross-functional and cross-organization collaboration.
  • Identify critical requirements – Countless hours wasted on typical business requirements (which all systems generally cover); instead, focus 80% of your attention on the requirements unique to your business, industry, and company. Think customer differentiation & profit drivers.
  • Prepare data and be realistic evaluating your process disciplines – No matter how well you prepare, your system will only be as good as your data and process disciplines.
  •  Dedicate appropriate resources – Be an exception. Supplement your resources, bring on appropriate expertise early on and be willing to invest in what will ensure success and mitigate your risk.

5 Critical Factors in Selecting ERP Software

As complicated as most companies seem to make it, the critical factors in software selection boil down to a select few:

  1. Your business objectives – Don’t worry about everything required in every module to run your business. Instead, take a step back and focus on what you need to meet your grow and profit plans.
  2. Cloud or not?  It depends. Dig into the details. Develop your own spreadsheets with paybacks. Consider your technical resources, adeptness with topics like cyber security and the latest technology, and your ability to navigate disruption and risk.
  3. Understand your culture – What are your cultural norms when it comes to change? Do your employees have an entrepreneurial spirit or do they require strict procedures? These answers will be integral to aligning culture and technology.
  4. Think about design upfront – Not thinking through down-the-line implications will derail the best of projects. Incorporate design and a holistic systems-view upfront.
  5. Ballpark estimates and ranges – Get a ballpark upfront, and never accept the first estimate. It’s typically too low! Worse yet, two suppliers that should be within 10% of one another can be 100% different. Ensure you are comparing apples to apples, and remember implementation, not software, is the 80-pound gorilla of ERP success.

ERP is a tough topic! Clients worry they are “too small” or it will be “too expensive”, and in the interim, the competition passes them by since having the technology that supports a superior customer experience without breaking the bank is a “must”, no matter your size or industry. With that said, we have seen clients ready to “throw out” a perfectly suitable ERP system as they think it is the system, not the process or people that is the issue when it isn’t.

If you’d like an expert to assess your situation to partner with you to achieve these types of results, contact us. 

      

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Eagle Eye Strategic Focus

Supply Chain Management is Evolving: How Will It Affect Your Enterprise?

What’s Ahead for Business?

 



ERP Implementation Stars

October 14th, 2013
Acknowledge your ERP implementation project leaders for their ability to manage multiple moving parts.

Acknowledge your ERP implementation project leaders for their ability to manage multiple moving parts.

I’ve found that successful ERP implementation project leaders are unsung heroes as few supply chain executives could or should understand the thousands of moving parts and critical elements to achieving success.

What are a few of these key elements?

1.      Start with a goal – What are you expecting your system to do? Hopefully you are not expecting jumping jacks through rings of fire – outrageous? No. Because of the number of moving parts, it is a challenge to grasp; thus, it is incumbent on us to boil it down and gain clarity.

2.       Develop a roadmap – No point jumping into training and debates on how to set up key functionality if you haven’t developed a roadmap. How will you get from here to there? How will your processes change? What are the impacts?

3.       Think design – Design is a critical element when it comes to integrating the logistics process and system into a sustainable solution going forward. Ask design experts for help as it requires someone who sees connections and down-the-line impacts that most don’t.

4.       Focus on critical requirements – The critical requirements that have the most impact on your business from a systems perspective (what’s unique to your industry or business from a systems perspective or something that is a competitive differentiator) should gain the majority of your focus.

5.       Celebrate your project management gurus – The rest is a continual planning, assessment, redesign, metric tracking and follow-up on the critical path timeline. Organization, follow-up, leadership skills are a must. Appreciate that these unsung qualities will make or break your success.

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ERP Implementation: Secrets to Success



The Critical Importance of Design

September 23rd, 2013
Never underestimate the importance of design when upgrading or implementing supply chain systems.

Never underestimate the importance of design when upgrading or implementing supply chain systems.

I find that supply chain design is often undervalued. We seem to blindly follow systems and business processes handed down from our information technology departments and resources, but do we take the time to think through design? Purchasing, logistics, and ERP systems are considered big-ticket items for most companies.

Why would we leave design to chance and not fully leverage our investment?

If you are upgrading or implementing a new software system, start thinking about design prior to implementing, you cannot start too soon. My best clients ask for their processes to be reviewed, documented, and improved upfront. This way, the clients are familiar with the processes, and can better sync up their system and process design to deliver results. Even more importantly, those clients typically have a much smoother implementation, less customer disruption, less cost, less confusion.

If you are not upgrading or implementing, do not despair! Anytime you make a commitment to design, you’ll gain a benefit. Start by asking your employees about what is working and not working. Listen to their feedback. Review configuration options of the software. Get familiar with the functionality and business needs. Join user communities. Ask for ideas. Develop plans for design improvement. Significant results can be achieved without significant investment.

For example, one of my clients wanted to bring inventory levels down to free up cash without affecting service levels. We reviewed the people, process, and systems. There were opportunities to re-design aspects of each – within 6 months, the re-configured and re-allocated people, process, and system was able to deliver a 30% reduction in inventory.

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Lean I.T.



What is a Systems Pragmatist?

August 27th, 2013
A Systems Pragmatist thinks about and incorporates design every step of the way, and stays several steps ahead of the process.

Systems Pragmatists incorporate design every step of the way, and stay several steps ahead of the process.

Would you select curtains to spice up a house with a rickety foundation? I certainly hope not! Instead, you would resolve your foundation issues before even thinking about nice-to-have’s. So why do we spend countless hours picking out curtains and discussing color choices in businesses when our foundation isn’t stable?

Based on my 20+ years of experience as both a former operations executive and as a global business consultant, I find that more than 50% of my clients prioritize curtains over the rickety foundation – at least for a while. The excitement of implementing the latest lean program or ERP system outweighs blocking and tackling in terms of excitement, career interest etc.; however, it fails miserably. On the other hand, those companies who thrive ensure they design and implement solid processes and systems before even discussing programs that will build upon the base.

Since business processes and systems can become quite complex and cost millions of dollars, it is critical to simplify the design to what’s essential to your organization and focus on the core processes and related functionality that will support your business strategy and deliver bottom line results. This is where the Systems Pragmatist skill set comes into play – in essence, it cuts through the complexity to rapidly define, design and deliver the critical processes and system functionality required to elevate business performance.

Although we could discuss countless tips and techniques for designing and improving business processes and systems, there are a few core essential tenets: 1) Understand your objective. 2) Think design. 3) Execute & integrate with the culture.

1. Understand your objective: One of the worst mistakes my clients make is when they jump to solutions (process improvements, implementing the latest programs and selecting new technologies) before they understand the objective. As cool as the latest e-commerce functionality or S&OP results, it will become a complete waste of time and money if not aligned with the company’s direction and objection.

I have found a differentiation in my clients who leverage processes and systems to a competitive advantage vs. the rest – they think about design in every element of the process. Are you thinking 4 steps ahead in the process? How will it affect your ERP system results? Have you built in flexibility? Agility? Speed? Certainly, in the new normal business environment, those who have access to critical data for rapid decision-making, who accelerate products to market and who deliver faster than the competition will win the business. Have you thought about how to design these capabilities into your processes and systems upfront?

3. Execute and integrate with culture: Last but not least, the best design in the world is useless if it’s un-implementable! Software firms use the terminology of “build” and “run” to mean design a model or process trial and then roll out and utilize effectively. These can be good reminders to make sure you’ve dotted your i’s and crossed your t’s and that your process and system functionality work as expected.

An essential element of this phase is to integrate the business process improvements and system enhancements with the culture. Is it an after-thought or do folks think about it similarly to shipping orders (meaning it is part of their routine)? Embed the processes into the daily, weekly, and monthly routines. Consider potential roadblocks and bottlenecks upfront. Ask employees and supply chain partners for input and feedback. Test them out. Think through changes to related areas such as performance management systems.

I’d be surprised if you haven’t heard a horror story associated with a system implementation. There are countless reasons for them: Not enough training. The system didn’t do what we needed it to do. It wasn’t set up to work for the way we do business. We didn’t have enough time. It wasn’t tested thoroughly. And the list goes on. For example, I’m often times brought in by clients to help resolve system snafus that typically result in horrendous customer service issues and down-the-line negative profit impacts. 80% of time, the client feels as though the lack of training is the issue. Although it is always part of the issue, I find that it is 20% of the issue; whereas, design and integration with the daily routine is the 80/20.

Designing and implementing business process improvements and leveraging system functionality to drive business results can require an investment of time and resources. However, you’ll be left in the dust in your broken down Yugo if you don’t prioritize this critical priority. Why not get ahead of the competition by not only creating a solid foundation but also designing it as a strategic advantage to deliver a significant return on investment?

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