ERP expansion projects must be collaborative

Most manufacturing organisations recognise that they need to be expanding the management functionality of their enterprise (ERP) systems into their supply chains, but the majority don not know which way to turn. This is the bottom line finding of research by Deloitte Consulting from its recent Strasbourg at an ERP conference. Deloitte’s respondents agreed that businesses today need to increase focus on the ‘extended enterprise’ rather than just internally-facing ERP, but 86% admitted to not really understanding how to reach this next stage. Beyond this, the survey found 82% currently do not measure return on investment (ROI) from technology, while 86% admitted that IT strategy should be aligned more closely to their companies’ business objectives, but lacked clarity on how to make that happen. David Dutt, UK ERP leader for Deloitte, says: “Organisations are confused by the numerous technology fads and terms currently being bandied about. Using technology to extend an organisation’s reach and capabilities doesn’t have to be complicated.” He insists, disarmingly: “It’s simply a matter of effectively linking processes and technologies with those of your suppliers, allies, outsourcers and customers.” Small wonder users don’t know which way to turn! Most of us see a minefield in that statement. But he continues: “Extending your enterprise can cut costs and generate revenue, realising return on investment that may not have been seen before.” So, he’s right, it is worth doing. And in fact, with the coming ‘collaborative’ age, if you don’t most pundits agree you’ll be giving your customers a good reason not to do business with you. Deloitte Consulting has launched a third book in its Straight Talk series, entitled ‘How to Create the Buzz’. The book takes a practical look at what the ‘extended enterprise’ is about, and provides a step by step approach to doing it. For a copy contact Ian Burrows at Deloitte Consulting on 0207 303 3000, or email iburrows@dc.com.