WM's Brian Tinham says focus new ERP projects on the business, not on the software
It seems astonishing that in 2013 enterprise software consultants still have to remind manufacturing businesses embarking on ERP implementations that people, business processes and change management are the hurdles, not so much the software. But so it is.
Despite the widely acknowledged fact that most ERP systems can now do much the same job, project teams still bog themselves down in the traditional RFQ and system selection routine of yesteryear. They neglect what matters far more – the business itself.
It's not difficult to see why. New ERP is a serious and expensive (money and time) undertaking, so, goes the thinking, we better make the right choice. And it's true that systems, although similar, are not yet commodity items. However, given that the vast majority of manufacturers only encounter a full-on ERP project once in a decade, surely it also makes sense to invest time in listening to people who run implementations day in, day out?
And what they will tell you is best paraphrased as, 'by all means spend a little time choosing your system and supplier – but do so by focusing on your own USPs, not the givens'. That means checking out their industry specialisations, people, software/services costs ratio and probably the scope of their business process modelling and management tools (page 21).
However, they will also advise that much more effort should be expended on reviewing existing business processes in light of company goals – because these are very unlikely to be up to the task. What's more, they will suggest that the latter should be both the starting point and kept under iterative review, with the usual caveats around scope creep and reining in expectations.
Why? Because the fact is this has to be a voyage of 'if, then' discovery. You may well be surprised at all modern systems' sheer functionality and flexibility. Screens and process automation that hitherto had to be customised are standard or easily configurable now. More importantly, business process modelling and management tools can be cathartic, in terms of exposing and enabling significant improvement.
As Oliver Wight consultant Dawn Kynaston, puts it: "Too many people think they know what they want, but they don't... They put all the effort into the wrong place. ERP is much easier than it used to be. Businesses need to understand today's tools but most of all their own processes."