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The value of realism

This post is inspired by an article I found on ERP focus by Shane Starr.

Shane explains why ERP will never be the cure for all ills it is often painted to be and this is an important point. Too many companies go into a very expensive and long term project thinking that it will sort out issues they are having all over the organisation – from getting the accounts out on time to painting the garage roof.

The fact of the matter is that any implementation is only as good as the scoping process. If you choose the wrong system then it’ll never be the right system, whatever you do.

Similarly an ERP system won’t fix broken processes or poor organisational behaviour and if you have an inefficient process under your old software then a new system won’t be any better if you just transfer the old way of doing things.

A good analogy is a company having problems with their call centre not answering phone calls quick enough. Putting in a new phone system won’t stop Johnny from nipping out the back for a cigarette or someone answering the call in a surly manner because they had a bad nights sleep.

Of course this is not the image that the phone system company will portray. They’ll explain how quick the system is and how much information can be gleaned from it. It’s the company executives that conflate the problem (slow response times) with the solution (a really quick phone system) without examining the root cause.

Exactly the same thing happens in ERP projects. Hundreds of thousands of pounds are spent on software that will never cure the problems that execs are seeing but will just mean that you can see them a bit better!

What can you do about it?

For a start have a good long look at the problems you are having and decide whether they are truly down to the system, organisation behaviour or your processes.

If you do identify problems with the system then look a bit deeper – are they inherent in the product you have or can you tweek the software to do what you want.

If all else fails and you do decide to take the plunge and buy new then make sure you get someone independent on your side to help you through the choice process. Please don’t take all of your information about what a system will do for you from the vendors. After all they are salesmen and although not all salesmen are sharks it has to be said that they still have a vested interest in making sure you buy their product over those offered by the competition.

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