Members of the C-suite must ensure they adopt a modern approach to business operations to allow them to remain competitive. This can be accomplished by using Enterprise Resource Planning (ERP) software, and Phil Baker, Chief Technology Officer NoBlue, is here to tell us more.
As digitalisation increases and new disruptive technologies emerge, expectations from consumers and new competitors are also increasing at an exponential rate. However, businesses must understand the importance of digitalisation and its effect on their business and market space.
For Chief Technology Officers (CTOs) and Chief Information Officers (CIOs), it is essential that they adopt a modernised approach to business operations, seeking out any, or all tools available, which can give them a competitive edge. For many companies, this can be achieved with Enterprise Resource Planning (ERP) software.
Embracing a new era
When adopting new business processes, company culture is one of the biggest hurdles. In these situations, employees often feel that a new system and process will challenge the way they feel they need to work to complete or achieve their given tasks.
In the long run, adopting new, software-based ERP systems can improve a work forces’ efficiency helping to automate and optimise key operations, but for it to be successful, the basis must be there from the start. While it’s important that C-suite and stakeholders are on board, it’s critical that end-users are willing to adapt and are completely committed to the system, as no system will work without the users’ involvement.
The best way to do this is by educating employees in culture change and giving them time to adapt to possible changes in roles and positions, and of course plan training before, during and after the implementation process. This way, employees can identify potential problems and optimisations over existing processes, which will ultimately ensure the implementation process is a success.
Best practices
Planning is also critical to ensuring a positive outcome. CTOs and CIOs must also carefully consider each stage of the implementation process while keeping in mind a clear vision of what the business wants to achieve from the migration and its desired outcomes. To reach the best outcome it is vital that the business has a full understanding of what is required and why. Of course, these may change to meet best practices, but CTOs must understand what is required for each process and what the eventual outcome must be.
It is essential that trusted process owners within the business are included along the way to gather analysis and define requirements. Key requirements and performance metrics must be decided in advance of the implementation to avoid wasting resources or possible delays in implementation. Requirements must also be defined, with must haves and ideal outcomes differentiated. Prioritising is also essential but it is something which shouldn’t be fixed, but rather be flexible to be modified to align with company needs.
For CTOs, CIOs and the wider company, the implementation process can be intense. It involves a lot of business strategy decisions, which must be decided by senior management. To help move this process along, I advise that CTOs assign a project manager as the single voice and point of contact, helping to guide both the company and the vendor through the process. I would also strongly recommend hiring an external business consultant who deals with audit processes as they will be able to provide objectivity to a company’s requirements based on their years of experience in such processes. The costs incurred here will not only add serious controls but will also save time and costs further down the line.
All in all, overhauling your current infrastructure is no easy task and that is why when choosing their ERP solution, CTOs or CIOs shouldn’t take a leap of faith into the unknown. It is critical that they use a methodology and a partner which has proven success and has consistently demonstrated effectiveness over other implementations.
ERP evolution done right
If ERP evolution is done correctly, it can pave the way for companies to enjoy a new, modern way of working. This includes the automation and integration of key processes, as well as the sharing of information across the organisation.
With a proven track record and principles based on best practices, NetSuite’s ERP software has the ability to integrate all the organisational departments, divisions, lines of business and geographical locations into a unified, enterprise-wide information system. This means that information can be stored and shared from a single database, so everybody within the company can work with a single source of truth, reducing errors and allowing better insights, based on real information.
Working on a single database across the organisation also makes processes more agile, for example, a sales order automatically flows into the financial system without any manual re-work, allowing the order to be processed more quickly and have financial close the books faster. This also means that reporting is more accurate and does not contain differences between the different departments.
What’s more, as the ERP system is cloud-based, it means that software is more affordable and updates can be carried out while maintaining the specific customisations the business needs. If CTOs and CIOs choose a flexible solution such as this, its ERP systems can grow with the company. For instance, the company can grow its operations from local to global business without the need to change the system – providing a solution which is lifetime guaranteed. Additionally, it provides the agility to adjust processes and adopt new workflows, product types, sales channels, warehousing etc, without the need to cause major re-work.
The future of ERP
As ERP systems continuously advance, NetSuite can provide a solution which can move with the times and industry trends.
Mobility will likely be the ruling ERP feature by 2020 and will have the ability to provide users with immediate mobile access to production or the shop floor, enabling them to cope with problems in real-time, while reducing wasted resources and materials – which is a win-win situation for CTOs. What’s more, managers will also feel the benefits of greater mobility, providing them with the tools to track their Key Performance Indicators (KPIs) and gain insights of their business performance, even when they are off site.
To achieve this level of mobility, flexibility is a must. ERP features must be able to connect devices, departments, partners, suppliers and customers in one versatile database. This will also enable companies to access data in one place, which will in turn improve their business intelligence. Typically, every company uses data provided by their ERP to plan business strategies, but reporting is not enough in today’s competitive world – companies need smarter and more intelligent ways to use this information.
This in turn will also lead to more intuitive and user-friendly ERP systems.
End goal
As the market place becomes increasingly competitive, the evolution of ERP systems will continue to grow at a rapid pace, with most businesses choosing to migrate to cloud-based systems. While the initial cost, time and effort involved in ERP evolution may put some CTOs or CIOs off, the benefits of improved processes and Total Cost of Ownership (TCO) will far outweigh this if the right solution is chosen.
If the right ERP system is in place, employees can focus on being productive instead of dedicating time to administrative tasks. All in all, the company will be able to reap the benefits of reduced increased Operational Expenditure (OpEx) savings, improved collaboration and productivity, better analytics and happier customers – making ERP evolution a no-brainer.
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