Tag Archive: ERP implementation

Is Your ERP System Scalable?

August 14th, 2019

erp successSince we happen to be working on 3 or 4 ERP system projects concurrently, the topic of ERP is top of mind.

Let’s start by saying upfront that we turn down ERP selection project requests. Not everyone needs a new system. Perhaps a process upgrade and better utilization of your current system will sustain your business for 3-5 years. If so, why divert attention? On the other hand, waiting “too long” will quickly spiral into disaster. How do you know which of these is your situation?

An ERP upgrade is one of the most significant initiatives a company can undertake, and the statistics aren’t good. 80% fail to achieve the expected outcome! Yet, if your ERP system isn’t scalable, hiding your head in the sand will lead straight to unmitigated disaster. Thus, it’s best to be proactive, diligent and strategic when it comes to this topic.

Selecting a system isn’t something to delegate to your IT person. Instead, it is something you must “own”. After all, if your system will support your resources so that you can grow the business with the peace of mind that your system will enable a high level of customer service with additional customer-friendly capabilities (such as a customer portal), support your #1 asset (your employees and partners) behind the scenes and allow your business to scale with minimal if any investment of time and resources, it suddenly becomes quite relevant.

The 80/20 of success relates to just two items:

  • Your critical success factors – what is unique to your company or industry and/or what drives customer differentiation and profitability
  • Your design and implementation partners – although the focus typically goes to the software, as with business, the 80/20 of success is with people and partners.

Having an ERP system that supports your business objectives is another key component of creating a resilient supply chain. If you’d like a rapid assessment on whether your ERP system will support your growth and business objectives, contact us. And please check out our resilient supply chain webpage.



Even The Best System Will Fail Without Talent

September 8th, 2017

As an ERP expert, it is quite clear to me that even the best systems will fail miserably if they don’t possess talent. Don’t even bother to select and implement an ERP system if you don’t have the “right” people on the bus. Start with executive support and continue on down through every position – everything is a team effort.

Teamwork is everything

It’s paramount in business to have the “right” people at the table.

Since we’ve worked with many clients on ERP projects, it is crystal clear what impact people will have on your business’s success. Throw out the notion that ERP is a technical topic! Instead, start thinking of it as a transformation initiative of substantial importance to business success.

Talent Leads the Way to Success

There are countless ways in which talent will affect success. To name just a few:

  • The sales team at the ERP software provider. Let’s start with the people selling the system. If they aren’t geared to educate you on their system and its fit, you can be sold “a bill of goods”.
  • The implementation team at the ERP software provider – there is little as important as the particular resources you partner with to implement your system. Set it up sub-optimally and you’ll have enduring issues.
  • Your ERP team – since ERP can be such a time intensive process, the temptation is to assign non-integral people to the team since the day-to-day must carry on; however, this team is designing your future!
  • Your executive sponsors – these folks are in a critical position to understand the status, make critical decisions, consider the fit with strategy, supplement resources as required and much more. It is not for the faint of heart!

If you’d like to ensure success with your ERP system, you’ll START by considering the people.  Put more time and thought into your talent. As much as or more than you put into evaluating functionality and you’ll be grateful down-the-line.

 

Did you like this article? Continue reading on this topic:

Why ERP Success Has Little to Do with Systems

 



How To Know If Your Old Business System Is Just Fine

September 8th, 2017
Time for an upgrade?

Is it time to upgrade your business systems?

We cannot tell you how many clients call thinking they need a new system to support their business when they simply don’t! Certainly, there is a time to upgrade to a new business system, when you’ve outgrown your old one (for example: QuickBooks with add-ons like Fishbowl), or your old system is highly customized and unsustainable, or when you are in the midst of a merger or acquisition. However, before jumping to the conclusion that your system must be upgraded, think twice.

Any ERP transformation project will be expensive (more than you think!) and resource intensive. With that said, it is an absolute must to support business growth and success in some situations. Just make sure yours is one of them!

To upgrade or not to upgrade? That is the question.

It is also quite possible to extend the life of some systems. Is there a way to extend the life of your current system? We often find during analysis that there are options worth considering. It is smart to think about the timing of your upgrade and whether you can impact it. When can you dedicate the resources to ensure success? Of course, from one perspective, sometimes there is never a good time. And, on the other hand, we have seen clients wait “too long”. You don’t want to be in that club either.

Instead, complete a simple strategic analysis of your business situation and ERP needs and balance them against your current capabilities. An answer will emerge and just might “save you” either way. Perhaps you’ll be able to extend the life of your old system and maintain focus on your business OR you’ll find out that if you wait any longer, your competition will pass you by. Either way, it is better to be in front of it.

If this article was helpful, Continue reading on this topic:

Should You Upgrade Your ERP System?



Why Executives Should Care About ERP Strategy

September 6th, 2017

Lately, we’ve been called in by several clients with ERP challenges that directly impact business growth and success. Do you desire profitable growth? If so, add ERP into your strategic discussions. Would you delegate a decision that could literally make or break your customer service, profit margins (or lack thereof) and ability to grow? I think not!

ERP Strategy Meeting

Incorporate ERP strategy discussions into executive meetings. It matters.

ERP Strategy Matters

There has been a widespread need to consider ERP as a strategic topic. For example, these scenarios have arisen in just the last month:

  1. In one manufacturing company, the ERP system was holding them back from growing. For a family-owned business, that is the equivalent of a noose around the neck.
  2. In another manufacturing and distribution business, they couldn’t figure out their costs – this issue certainly provides challenges for profitable growth.
  3. And in yet another situation, the ERP system wouldn’t support the business processes adequately and therefore would hold the owners back from getting away from the business (even for an extended vacation), let alone increasing the value of the business.
  4. A complex enterprise also struggled to further utilize their system for management decision-making due to data integrity obstacles and the lack of flexible reporting.

As I enjoy stating the obvious (one of my favorite clients used to say about me), none of these situations are desirable! Instead of ending up butting your head against the wall, start thinking about ERP as a strategic topic and include it in your executive meetings.

If you liked this article, check out:

Why ERP Success is a Strategic Topic 



A Systems Transformation

August 10th, 2017
Sytems Transformation

If a ‘system’ isn’t in place to provide process sustainability and a key resource changes in some respect or leaves the business, a gap emerges.

A systems transformation doesn’t necessarily relate to the computer system. Instead, a systems transformation relates to how the people, processes, systems, metrics, costs and more all come together to deliver profitable growth – or not! And, as one of my potential clients put it – dictates whether we are blind or able to see where we are going. Can you “see” where you are going?

We have received an increasing number of these types of calls lately. Perhaps it is because it is harder than it sounds to achieve a systems transformation.

 

Real life application

For example, in three situations that relate to a topic that we’re dealing with currently, the issue has built up to the need for a systems transformation over time. In all three situations, there is one or more “key resource” who knows how to navigate the system to deliver customer service, profit and success in some aspect of the business. Whether it’s related to inventory, pricing, procurement, margins etc.. But if the system isn’t in place to provide sustainability (which is definitely not uncommon) and the key resource changes in some respect or leaves the business, a BIG gap slowly emerges.

Do you need a systems transformation before an unwelcome surprise appears out of the blue?

 

Did you like this article? Continue reading on this topic: A Systems View

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