The Wall Street Journal on August 23rd published an article and regarding some of the common pitfalls of Enterprise Resource Planning (ERP) implementations.  The article and report were written by two professors, one a strategy professor and one who focuses on Information Systems.   You can read the article, called “Diets That Don’t Work: Where Enterprise Planning Goes Wrong,” here.

The article agrees significantly with RJMC’s take on ERP – that the software can provide tremendous value as long as the buyer exercises a proper degree of care in the selection and implementation of the system.  RJMC has preached consistently that change management and management of expectations are critical keys to success and the authors of this study concur, writing:

Some companies stumble with ERP at this [process change] stage because they are afraid to abandon old ways of working that have served them in the past. Others stumble later on by embracing technology that simply mirrors older systems already in use. Still others are reluctant to let go of either their old software or old ways of working.

RJMC agrees that identifying and addressing the processes that are critical to a company’s success and protecting only these processes from significant change is a good prescription for a successful implementation.  Allowing for change to all non-critical processes in order to take advantage of the efficiencies that a new ERP system offers help our clients stay on time and on budget during their projects.  If you have chosen your ERP software properly, you can trust that the best practices built into the software will work for most of the “everyday” tasks that your team needs to accomplish.

A link to the full “WSJ Executive Advisor Report” is available on the WSJ article page.

Rubenstein / Justman Management Consultants (RJMC) is a management consulting firm that prides it on the strong relationships it has established with its many clients over the past 24 years.  RJMC is vendor and solution independent and does not sell hardware or software or perform system implementations.  Visit www.RJMC.net to better understand the scope of RJMC services.

Over the past 24 years of conducting Enterprise Resource Planning (ERP) evaluation and selection projects, RJMC has frequently been asked for the “templates” and other process documents that we use to support our successful ERP projects.

Well, you no longer have to wait to learn how to manage your ERP Evaluation, Selection, and Implementation project.  We are now offering a “Live” on-site One-Day ERP Workshop that will teach your team to perform the steps necessary to ensure success when embarking upon this mission critical project.

During the RJMC One-Day ERP Workshop, we will teach you how to . . .

• Identify the unique strengths and shortcoming in your current systems
• Identify system requirements that are key to the on-going success of your business
• Differentiate between “Desires” and “Needs” and why this is an important distinction when selecting a new system
• Define the appropriate scope for your future ERP system
• Narrow the field of solutions alternatives to those that align best with your company needs and budget
• Manage vendor fact-finding sessions
• Prepare a document that you can share with solution providers to obtain a meaningful proposal
• Conduct a software solution demonstration that contributes to your decision-making process
• Review a software license and consulting services agreement properly
• Build a effective implementation project team
• Plan for your ERP implementation by setting realistic scope, timing, and budgetary expectations

This on-site Workshop will provide your whole team with an opportunity to ask questions during the Workshop and RJMC resources will also be available for the following 30 days to respond to any general questions regarding the Evaluation and Selection process discussed during the Workshop!

RJMC represents the best interests of our mid-market clients and assists them in finding the right ERP solution at the right price.  Your ERP project will ultimately change your key business processes to improve your operations, reduce your costs, and support your on-going success.  Let RJMC show you some of our magic so that your company can plan for this significant activity.

Contact us at 310-445-5300 to schedule a time for your Workshop!

Rubenstein / Justman Management Consultants (RJMC) is a management consulting firm that supports business process change and prides it on the strong relationships it has established with its many clients over the past 24 years.  RJMC is vendor and solution independent and does not sell hardware or software or perform system implementations.  Visit www.RJMC.net to better understand the scope of RJMC services.

If Enterprise Resource Planning (ERP) software vendors can use a simple webpage questionnaire to tell a buyer what level of return on investment to expect from her purchase, why do many companies that buy ERP not achieve the levels of savings and increased sales that the ERP vendors promise? The answer lies with the buyer of the software – not the vendor. Software buyers must plan carefully to achieve their return on investment goals.

As most IT experts worth their salt will advise, the ERP project is a “business” project first and foremost and an “IT” project second. The goal of the ERP project is to enhance business value and create opportunities for managers and staff to add to the company’s bottom line. This goal must be the focus of most of the planning that is involved in an ERP implementation project if the company expects to see a substantial return on its ERP investment. Allowing ample time for hardware and network set-up, data conversion, and system training is necessary for a project that results in an operational ERP tool, but not sufficient for a truly successful ERP project in terms of value to the business.
Planning to create ROI (enhanced business value) is the only way to achieve the ROI you seek. We offer our five steps to Achievable ROI:

1. Review Current Processes with Functional Teams: Most managers can identify at least a few things that her department could handle more efficiently if she had the right tools. Use some brainstorming sessions with your managers and staff to identify some of the “low-hanging fruit” that can be improved upon with the introduction of a new ERP system. Heavily paper-based or manual processes are the first targets for improvement.
2. Diagnose Areas for Improvement: After the obvious inefficiencies have been identified, challenge your managers to ask about each process “Is this the best way to accomplish this task? What is the obstacle to improving this process?” The solutions to these challenges may be related to the system or may not be related at all. Either way, this is a good time to take a hard look at what each department is doing in order to target problems to be fixed.
3. Understand the New System Tools: While training is critically important before the new ERP system goes live, initial user training (along with solution demonstrations) can serve as a tutorial for your managers and “super users” that allows them to envision how they want their processes to work once the system is live. Understanding what the new ERP system can do should inform that solutions that your managers develop to address their areas of inefficiency.
4. Allow Functional Teams to Set ROI Targets: In setting your Return on Investment targets, make sure that the managers responsible for achieving the ROI are the same people who set the target goals. This is important for two reasons. First, it should provide you with goals that are actually achievable (although allowing those who will be measured to set the goals also means you must validate that the goals are not too easily achievable) as these are the staff that are most closely in touch with the processes to be improved. Second, allowing managers to set the ROI goals creates a buy-in from these managers that will ensure they do not abandon the goals without good reason. It is more difficult to abandon a goal you have set for yourself than to abandon an “arbitrary” goal set by your upper management.
5. Measure Progress Towards the ROI Targets: Remember that if you can’t measure it, you can’t manage it. Clear measurements, clear timelines for results, and some good old positive peer pressure will help your team to the finish line – to the targeted ROI within the targeted timeframe.

The secret here is making sure that your plans for ROI are influenced by (if not outright created by) the managers and staff that will be responsible for achieving the results the company desires. Allow your people to plan for their success, measure their efforts, and reward their success. The ERP system is a tool to help your business achieve its goals. Remember this throughout your project and you will be on your way to achieving the ROI that you expected.

Rubenstein / Justman Management Consultants (RJMC) is a management consulting firm that prides it on the strong relationships it has established with its many clients over the past 24 years.  RJMC is vendor and solution independent and does not sell hardware or software or perform system implementations.  Visit www.RJMC.net to better understand the scope of RJMC services.

For the past 24 years we at Rubenstein / Justman Management Consultants (RJMC) have been assisting our mid-market clients to assess and improve their current enterprise systems or to evaluate and select alternative systems.  Over these years we have noted considerable change in the software industry, the greatest being in the area of consolidation.  Today there are fewer viable vendors and solutions in the marketplace than in the past.   That isn’t necessarily a bad thing, just a fact.

Today, the players in the mid-market space for integrated enterprise solutions include big names like Epicor, Lawson, Microsoft, Oracle, Sage, and SAP.  Then there are the niche players that address specific vertical industries or offer best of breed solutions – too many to list just now.  But one of the larger companies that sometimes slips through the cracks is Infor.  With the objective of getting some clarification as to the company’s strategic direction as it relates to manufacturing, RJMC initiated a call directly to Infor.  We were pleasantly surprised by their overall candor and willingness to discuss product strengths and weaknesses.  Here are a few highlights from our conversation regarding the status of their manufacturing solutions.

• Infor is a U.S. based company with over $2 billion in revenue, 70,000+ customers worldwide, and more than 8,000 employees.

• Infor has grown largely through the acquisition of a variety of ERP solutions, some of which could be classified as legacy in nature, but in most cases, Infor is providing a migration path through its Flex program to allow customers to upgrade and replace their legacy software to one of the other more mainstream solutions in the Infor family of solutions.

• Although there are many ERP-related solutions referenced on the Infor website, today’s focus on manufacturing is largely supported by the following solutions:

• Infor ERP LN / Baan – This solution is targeted for companies over $200M in annual sales with global requirements.  LN is the new name for the tried and true Baan ERP solution.  Infor is the process of introducing tools which will speed implementation to 90 days or less.

• Infor ERP Syteline – This solution for discrete manufacturing received a recent upgrade and is built on Microsoft’s .NET technology and is targeted for companies up to $400M.  Syteline promises deep manufacturing functionality.  Integrated use of Microsoft SharePoint also provides an environment for project collaboration.

• Infor ERP Adage – This solution provides essential process manufacturing functionality for the food, beverage, chemical and life science industries.  The software retains a somewhat dated “look and feel” but seems to pack in a lot of functionality.

• Infor ERP Visual – This solution is oriented towards smaller companies in the range of $40M or less and addresses core back-office financial, sales, manufacturing, engineering, and distribution needs with project management capabilities.

The bottom line is that Infor is a viable option to consider if your business relies on discrete or process manufacturing. The solutions we discussed even covered global supply chain and distribution needs.  Infor offers solutions aimed at different sized companies as well as at different manufacturing modes, such as Make to Stock (MTS), Configure to Order (CTO), Build to Order (BTO), and Engineer to Order / Project Based (ETO).  Infor also addresses its solutions to companies looking to employ lean tools and flow manufacturing methodologies. We were impressed with the depth of the manufacturing expertise and knowledge on Infor’s part – it was clear that this area has been given a lot of focus and attention.

As a company that focuses on representing the best interests of our mid-market clients to assist them in finding the right solution at the right price, Infor should be considered.  From our brief, candid conversation with Infor, we are confident that they will only participate in an evaluation process when they see that they have a way to differentiate themselves from the competition either based upon feature / function, domain expertise, or by presenting a solution with a lower total cost of ownership.

Rubenstein / Justman Management Consultants (RJMC) is a management consulting firm that prides it on the strong relationships it has established with its many clients over the past 24 years.  RJMC is vendor and solution independent and does not sell hardware or software or perform system implementations.  Visit www.RJMC.net to better understand the scope of RJMC services.

The new ERP software solution will address the Client’s needs in the areas of Financials and Accounting, Supply Chain Planning, Manufacturing, Sales Order Management (including EDI), Inventory, Distribution, and Product Information Management.

The implementation project is set to begin soon with a projected “Go-Live” date at the beginning of 2011.  RJMC looks forward to adding this Client to our long list of Clients with recent and successful ERP implementations.

RJMC is proud of its unique market position as a truly independent management consulting firm.  Because we do not sell, implement, or make money from any hardware or software, RJMC’s recommendations are always focused on a single goal – our Client’s best interest.  Call RJMC today to find out how we can help your company select the right system at the right price!

Rubenstein / Justman Management Consultants

June 10, 2010

Functional business users and the Information Technology department often find themselves in a love / hate relationship.  Over the past several years, as we have guided a variety of mid-market companies in assessing or changing their current systems, we see that this relationship between users and IT is changing for the better.  Today, management teams that once found themselves reliant upon a few key IT professionals to support day to day operations are beginning to regain a refreshing level of systems independence.

Similarly, business users who verbally expressed their frustration in having to work with their IT departments to enhance system functionality or to access their data are gaining control over their own destiny because they are becoming more involved in taking steps to satisfy their own system needs with less and less IT involvement.  Is your company ready for this revolution?

What has contributed to this change and wave of boldness by system users?  In days gone by, users would often be intimidated to approach staff members who had the word “Information Technology” or “Information Systems” linked to their name.  Many of the functional business users of today are beginning to step forward.  What has contributed to their willingness to take on the IT establishment?  Here are a few reasons.

1. Much of the Mystery is Gone

The ever expanding use of smart phones, netbooks, and iThings has given many business users a level of confidence that they did not have even 5 years ago.  And although this comfort level with technology is more predominant with the under 30 crowd, even those of us that grew up in the MIS era are using smart phones and feeling more comfortable using digital devices and pivot tables.  So today, there is a growing reluctance and intolerance to wait months for a software change or a custom report.  Just give them the tools, and many functional business users will find a way to satisfy their own system needs.

2. Employee Turnover Raises Expectations

Much of our consulting time is spent analyzing a company’s legacy system for the purpose of identifying and recommending opportunities for change.  These organizations are often characterized by “Lifers” that have grown-up with the existing legacy system and the extent of their system knowledge goes no further.  As a company experiences employee turnover, either naturally or as the result of layoffs, it is highly probable that the next wave of employees will arrive with a new set of expectations that will go beyond “green screens” and “function keys”.  Companies need to be prepared to provide improved tools for these new employees.

3. Newer ERP System Speak in terms of System Functionality not Bits and Bytes

Today, state-of-the-art enterprise systems speak to users through easy to navigate web browsers that provide for user personalization, click-of-a-button data exports to Excel, real-time business intelligence, and user-friendly report writers.  Even during the implementation of a new ERP solution, the focus is on the functional users to define, with the assistance of a system integrator, the new system design that will support business operations.  This is often not a comfortable role for internal IT.  They remain important to the success of the implementation, but primarily by providing a reliable technology platform and assisting with data conversion activities.  Successful ERP implementations are typically an 80% functional and 20% technical effort.

4. Analytics is Providing a New View

ERP systems of yesteryear were highly oriented to taking an order and recording historical events.  Standard reports typically consisted of static views of data that would have to be re-keyed into a spreadsheet to expose the meaning of the data or to make it presentable.  The role of IT in this environment involved programming a custom report and staging or refreshing the data as of a point in time.

Today, off-the-shelf business intelligence solutions and most of the leading ERP software packages provide functional users with real-time access to their data so that it can be visually presented to support a decision-making process.   The role of IT in this environment is frequently limited to the initial process of building the appropriate data relationships so that the functional users can view and analyze the data that best addresses the needs of their decision-making process.

So what does this mean in the world of business users and information technology?  It means that the role of IT is becoming more directed to such matters as building reliable infrastructure, optimizing network communications and ensuring database security and integrity – all critical responsibilities within the organization.  As companies continue to introduce new, full-featured, integrated solutions, IT staff may no longer retain the level of functional knowledge that they have today.  That knowledge will instead reside where it best belongs, with management and the key functional business users who will once again become captains of their own ship.

Rubenstein / Justman Management Consultants (RJMC) is a management consulting firm that prides it on the strong relationships it has established with its many clients over the past 24 years.  RJMC is vendor and solution independent and does not sell hardware or software or perform system implementations.  Visit www.RJMC.net to better understand the scope of RJMC services.

With recent strategy changes at SAP, perhaps Lawson’s prominence in the healthcare sector would be attractive.

RJMC is proud of its unique market position as a truly independent management consulting firm.  Because we do not sell, implement, or make money from any hardware or software, RJMC’s recommendations are always focused on a single goal – our Client’s best interest.  Especially in the complex world of ERP Evaluation and Selection, our Clients find our independent perspective invaluable.