ERP Help for Companies Drowning in Data But Thirsting for Actionable Insight

By David Shaffer, ERP Practice Head, Lighthouse Consulting Services, LLC

Do you feel it is “sink or swim” with the tidal wave of data that is hitting your business? “Data, data everywhere, and not a drop to help us think” is a common lament.

But there is a tremendous opportunity you might be missing that competitors are taking advantage of, including interactive dashboards. These highlight key performance indicators – clearly and concisely – so executives can make decisions based on data and reality and not in a vacuum.

These capabilities are powering a next generation change in how the deluge of data can help you make better decisions. Consider these quick examples:

A men’s grooming product maker successfully implemented enterprise resource planning (ERP) to better track inventory and financial data.

A rapidly expanding confectioner used ERP to standardize thousands of chocolate-making processes and restructure an ineffective warehouse management system that could not keep pace.

A manufacturer of chemical products, which are used in electronics, automotive, and housing industries, implemented an ERP system to avoid human errors and to be able to automate workflows for increased productivity.

In each example, ERP was used to harness data.

Today, any business can obtain ROI with effective systems and processes that promote growth strategies.

Companies, regardless of industry, need to recognize the ever-growing need to integrate responsive information with optimal best practices within day-to-day operations. In the past, the selection of appropriate systems has been confined to those who have large budgets, resources, and time to do extensive evaluations and due diligence. That is no longer the case.

ERP Is The Mortar In The Brick Wall

To use a masonry metaphor, an ERP system is like mortar, the cement-like mixture of sand and lime that keep bricks in place. You can think of an ERP system working like the mortar that binds together the different computer systems for a large organization (your bricks). Without an ERP application, each department would have its system optimized for its specific tasks. With ERP software, each department still has its system, but all of the systems can be accessed through one application with one interface. The systems stand together like a strong brick wall.

Please understand that the appropriate evaluation and selection of systems is equally critical and important to the success of the mid-size, growing business. Based on years of evaluation, support, and success, we have developed a proprietary process that brings the same value and benefits of past selection without introducing extensive costs. Our belief is that hard-earned dollars should be directed toward solution implementation and not toward selection.

We recommend a process that incorporates a series of integrated steps that quickly and efficiently highlight the following:

• Scenarios that mirror operations in order to test the viability of proposed solutions

• Accountability for vendors that align implementation of value applications with operational efficiencies

• Selecting software solutions that follow business processes from ordering through fulfillment rather than just specific application areas

Implementation And Project Management

To help position our clients for success, we created an ERP selection process called Quick Start, developed with the expertise of consultants who bring business and system knowledge to the selection process. Our team recognizes the value of your investment and have first-hand understanding of the impact effective systems and processes can have on meeting growth strategies.

The Quick Start process encompasses several key interrelated steps that build upon each other and are directed toward the selection and implementation of the Information System that meets your requirements. The process focuses on your unique and key business flows rather than the nice-to-see demonstrations that many vendors focus on during demonstrations.

We recommend the following steps to select an ERP system:

1. Begin The Right Way. Get a qualified consultant who has traveled this road many times. Start with an initial kickoff meeting to set expectations, including an outline of preliminary observations gathered through an interview and site walk-through evaluation process.

2. Make A List; Check It Twice. Based upon the preceding interviews and data gathering, develop and review a list of key requirements for the new system, comprising needs that are distinctive for strategic growth. Create a list of key requirements and key business scenarios. Receive suggestions based upon observations for possible operational efficiencies.

3. Set The Scenarios. Develop key business scenarios as a framework for software demonstrations Unlike most selections that focus exclusively on application capabilities, recognize that businesses rely on the flow of information across departments. Scenarios reflect overall flows from order through fulfillment.

4. Assure Accurate Scenarios. Review the key scenarios with interview participants to assure accuracy.

5. Round Up The Vendor Suspects. Distribute requirements and scenarios to select software vendors. Identify possible solutions based upon experience and software vendor feedback from distribution of requirements. Assure that vendors understand the need to demonstrate the scenarios.

6. Demo That System Please. Participate in vendor demonstrations. Obtain consultant support to help your team in evaluating the potential fit of vendors. Assure that demonstrations are addressing the scenario requirements. Consultant should assist your team to evaluate the best fit.

7. Plan The Implementation. Review the recommended implementation plan. Some negotiation is required at this point.

8. Support Project Management. Have consultant provide interface between your company software implementation team and the vendor. The consultant should support the implementation of best practices.

Final advice

The selection process must put you in control over the software vendor by assuring the proposed solution meets the process scenarios, and the consultant can help maintain that delicate balance of power. A selection process typically can be completed within an eight-to-ten-week window. Utilize consultants that are able to integrate business understanding with the value creation associated with information systems. Make sure the funds are spent on the right things, which translates to software delivery rather than consulting evaluations.

If you are open to a conversation about an ERP system, improving manufacturing workflow, or how our in-depth work style and personality assessment could help your team, including pricing and the science behind the tests, please contact us at 310-453-6556, extension 403.

If you would like additional information on this topic or others, please contact your Human Resources department or Lighthouse Consulting Services LLC, Santa Monica, CA, (310) 453-6556, [email protected] and our website: www.lighthouseconsulting.com.

Permission is needed from Lighthouse Consulting Services, LLC to reproduce any portion provided in this article. © 2022

David Shaffer, who heads up the full-service business consulting ERP practice at Lighthouse Consulting Services LLC, is recognized for his ability to effectively integrate all aspects of the business, including financial management, information systems, infrastructure, and operations. David assists companies from executive strategic planning through operational and business process improvement opportunities to the selection and integration of management information systems solutions. His range of company support includes start-ups through Fortune 500.

In addition to a full-service Business Consulting Division, Lighthouse Consulting Services, LLC provides a variety of services, including in-depth work style & personality assessments for new hires & staff development. LCS can test in 19 different languages, provide domestic and international interpersonal coaching and offer a variety of workshops – team building, sales and customer service training, negotiations training, interpersonal communication, stress and time management, and leadership training.

To order the books, Cracking the Personality Code, Cracking the Business Code, and Cracking the High-Performance Team Code, please go to: www.lighthouseconsulting.com.