ERP System

How to succeed in business with the right ERP system metrics (Part 5)

In this final chapter of our look at the business benefits-driven approach to an ERP implementation, upgrade or expansion, we’ll take a closer look at the advantages of taking this approach, rather than giving IT sole ownership of the project.

Reduced project risk. Technology initiatives fail, and not infrequently.  Unless an organization is hyper vigilant in spotting failure indicators, undermining factors can creep into any project. Change management and organizational assessments shine a harsh lights on conditions that will derail best intentions. The enterprise, department and individual metrics and scorecards discussed earlier contribute to the necessary level of vigilance. The object is to ensure that technologies deployed are fully leveraged to deliver projected benefits and that risk is mitigated. Quantifiable business value is the mantra from start to finish.

Synergy between business and technical activities.  IT exists to serve the enterprise. In too many ERP system implementations, however, business objectives and technology activities are isolated from each other, with predictable outcomes. The business driven approach ensures that objectives, processes, metrics and available resources are defined to support the technical components of the project, and vice versa. When success is defined, managed and measured by the business side of the project team, IT can play its proper supportive role.

Addresses shortcomings proactively. Rather than attempt to remove obstacles and right incorrect assumptions after the fact, the built-in checks and balances of the business benefits-driven approach uncover problem areas when first they rear their heads. Since the focus is on “why are we changing this?” more than “how?” all eyes are focused on the prize.

Sets expectations for future projects. One of the cultural changes instituted by this approach is that it changes the way the organization tackles future technology initiatives. Lessons learned and successes gained become part of the corporate DNA. Change management has realigned personnel with corporate objectives and cultural assessments have lead to a stronger, more productive environment. Future projects start on firmer ground and the collective wisdom already gained give them a head start. Because the organization can point to specific business benefits and financial returns from the previous project, both management and IT can approach new projects with confidence.

Technology implementations can be a source of significant competitive advantage and operational efficiency. In fact technology often seems as nearly the last arrow a CEO has in his quiver to transform the enterprise and deliver the value shareholders and stakeholders demand. The philosophy espoused in this set or articles aims to ensure that ERP system implementations have a greater chance of hitting the bulls eye

Written by :

tracey boxer