Getting positive Return on Investment Outcomes for Enterprise Resource Planning Transformations...by Greg L Towne
Research and Experience
Even though ERP’s (Enterprise Resource Planning systems) are a fundamental asset for large companies; ERP transformations remain fraught with failure.
A recent McKinsey paper says three-quarters of all ERP Transformations fail to stay on schedule or within budget, and two-thirds have a negative ROI (Return On Investment).
They state five primary reasons (and challenges) associated with these failures
ERP Transformations can drag on for years with NO measurable impact or capability to make valid assessments.
Couple this outcome with
Changing industry and stakeholder expectations e.g. Industry 4.0, ISO 55000, Regulatory Compliance, etc
A lack of new innovative capability from ERP Vendors
Acceptance that the ERP design focus is still on feature/function and activity/task instead of business process
Impact of changing day-to-day business dynamics
A realisation that ERP systems are too monolithic for today’s business environment
And your ERP Transformation is heading into a death spiral.
Diriger’s approach and solutions to quick Return On Investment
Three basic principles to encompass the Next Generation ERP Transformation
Have a measurable and meaningful ROI in a short time frame
Be easy to align processes and business rules with organisation strategy, objectives, tactics and priorities
Be agile to design, deploy, adopt, correct, sustain and improve
Diriger’s approach has been tested over the past two decades and meets this challenge by understanding our Customer’s business environment; staying abreast of industry and regulatory influences; engaging and working with the Customer’s scarce resources and helping them on their journey; identifying where Quick Wins can be gained and how to ‘Extend’ business utility in a manageable manner over time; and provide technology and support that allows the Customer to focus on their core business.
Diriger’s Enterprise Resource Planning and Business Process Improvement Methodology
Following many years of developing, implementing and improving ERP environments across major Asset Intensive industries in various corners of the globe, we have been able to mould an ERP implementation and business improvement methodology (DirigerBPI) that produces results time and time again.
The DirigerBPI Methodology is built on Four Pillars that comprise the standard PDCA-Cycle (Plan Do Check Act)
Program Strategy (PLAN)
Uses our holistic and quantifiable business process improvement workshop methodology to garner business drivers and objectives, define and score gaps between current and future states, prioritise deployment tactics and approaches in alignment with the Customer’s strategy and business objectives. Diriger’s data visualisation and analysis tools are used to determine the Customer’s current state and Diriger’s High Performing Organisational tools (DirigerHPO) are then used for planning purposes.
Deploy and Implement (DO)
Diriger has a number of process-based applications that are deployed with agility via a micro-service architecture that utilises Artificial Intelligence, Machine Learning, Business Rule and Work Flow engines, Inherit Data Analytics and a Persona-based UI/UX. Each domain and process has the benefit and capability of being deployed individually and driven by business priorities.
Monitor and Control (CHECK)
Our flexible business rules and work flow engines allow the Customer to selectively measure and analyse the business systems performance and what additional improvement steps can be taken to optimise and then extend business outcomes in an agile manner.
Customer Camp-Out (ACT)
Currently, most Customers want to get rapid results for any new digital transformation initiative and similarly apply rapid corrective action in order to continue to improve. At Diriger, we not only provide you with the technology enablers to do this; we Camp-Out with the Customer at the coal-face to help ensure you get the ROI that your investment deserves.
About the Author...
Greg Towne is a Co-Founder of Diriger with 35+ years of experience implementing Enterprise Resource Planning solutions and Business Process Improvement Initiatives in Mining, Utilities, Energy and Defence industries. He is dedicated to working closely with our Customer’s in order to help them solve the BIG problems that have been in play for far too many years.