Do you have the right ERP for your business?

The AlchemistBusiness Process Re-Engineering, Business Process Review, ERP, Integration Services, Vendor Management

One of the running jokes about ERP is that the business always thinks that the last software package was better than the current software package, even when everyone hated the last software package. After the initial honeymoon period of a new software implementation, it’s pretty common for staff to start to focus on the system flaws and what it does that’s harder/ tricker/ messier than the last one. Not as many people will focus on what’s better and how processes have improved. While a lot about that reaction comes down to how people deal with change (you can read more about that here), it also is a result of how well the implementation was managed internally and how strongly the vision of “new system, better processes” was communicated to staff. We’ve seen businesses do this really well, to the point where staff were so focused on how the new software was better, or could be better, that when a really significant failing arose they all worked together to find a way through. We’ve also seen businesses do this poorly, to the point where when we encounter them a few years post-implementation, there’s a general lack of confidence in the system, increased use of MS Excel, and a feeling that maybe “the software just can’t do it”.

In some of these instances, yes, the software just can’t do it and was probably the wrong selection. In many, there are steps that can be taken to make sure the software is working optimally for your business needs and hand in hand with your business process.

Are Software Vendors the enemy? Really?

We haven’t encountered a customer who doesn’t have a war story with their software vendor. It’s pretty common to hear that there was a key resource who worked on the implementation and had a close relationship with the software vendor. Once that key resource moves on, so does that close relationship. Everyone left in the business suddenly has to find a way to communicate with this strange, technical beast.

Clients tell us that they’ve tried to discuss their issues with their vendor and as a response, been sold another piece of software that they say doesn’t work. There can be a lot of frustration around the relationship. However, it’s important to remember that issues in a business generally stem from business process issues, while issues within software may stem from configuration or training needs. Software vendors specialise in building and implementing computer software and they do that very well. However, they aren’t experts in your business. Depending on your vendor and how they work, you might be doing the equivalent of asking a plumber to fix the electrical wiring in your house. Software vendors need business to tell them what the business needs, rather than expect them to reengineer the business process and then provide a corresponding software solution. Software and software vendors won’t and can’t intuitively solve a business process issue, they can  help when you know what you need.

Do I really need to map my business process? But we just know what we do!

Sometimes the solution to your software problems is taking a step back and looking at your business process, taking into account what you do in the software and outside of it. Despite how well everyone thinks they know the business process, it’s always interesting to see how much of that is based on the assumptions of how it worked in the past versus an understanding of how it’s done now. Every time we’ve run process discussion sessions involving management and key staff, there’s been several moments of, “Really? Is that how we do it now?”. Without fail. No matter how good your procedures and documents are, processes tend to evolve with people. And when we’ve had the “Really?” moment, what follows shortly after is the realisation that the software is configured to do things the old way, not the actual way.

Is my business process the right process?

The other angle in a business process review is checking in to see if the business process you follow is the best way of doing things. It’s not common to hear that processes are followed because “we’ve always done it that way”. You might be trying to put the proverbial square peg into the round hole and perpetuating a way of doing things that no longer serves you. The best way to sanity check this comes from a CEO we encountered many years ago – every process was analysed in terms of “how does this help the business deliver our work in the best way that we can? Does it give us a better understanding/analysis of our workflow? And does it help us make money? If it doesn’t do any of those things, there’s a good chance we do this just to keep someone comfortable”. 

Can my software actually do what I need?

ERP companies used to market their software as “everything in one place” solutions, leading many consumers to believe that they will be all things to all people. While ERP can do a lot, the definition of “a lot” will vary based on the package and what you need it to do. For example, many ERP software packages either don’t do Payroll well, or don’t do Payroll at all. Most also won’t do industry specific processes, or niche processes such as Estimating. However, ERP sales people could still try to sell you as much of their product as they can, with your business using a “work around” that never actually worked.

Sometimes the solution is recognising that you need to find something else – not to necessarily replace your ERP, but to provide you with the specialist functionality that you need. Best of breed software packages are so common now and varying levels of integration are also available (you can read about that here), that it’s not as big a step to slot something else in as it might seem.

So… where do I go now?

In order to fix your software issues you need to understand the problem – Is it a business process issue? Is it software configuration? Or is it that another solution is needed? Remember that you understand your business and your software vendor understands software, so don’t rely on them to give you the answer when they may not understand the problem. Finally, don’t get fixed onto specific solutions or processes, because there could be a better way to do things. Be open to ideas, see how they could work, then decide which option you’re going to take. 

Do you need  help optimising your business processes and ERP?  Contact Business System Alchemy for more information by clicking here.

The Alchemist comes to your courtesy of Ruxana D’Vine and Michael Meryment, specialists in matching business needs back to technology. You can read about Our Services here.